Hold Bank of India, target price Rs 102: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has hold call on Bank of India with a target price of Rs 102.The current market price of Bank of India is Rs 89.4.

Bank of India, incorporated in the year 1906, is a banking company (having a market cap of Rs 36665.36 Crore).

Bank of India key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 14218.03 Crore, up 9.36 % from last quarter Total Income of Rs 13001.32 Crore and up 26.15 % from last year same quarter Total Income of Rs 11270.60 Crore. The bank has reported net profit after tax of Rs 914.72 Crore in latest quarter.

Investment Rationale
BoI currently trades at 0.8x/0.7x /0.6x its FY2023E/ 24E/ 25E ABV estimates. The bank has been improving its core operating profitability led by strong sector tailwinds along with improvement in the credit cycle that is resulting into lower credit cost which should augur well for earnings trajectory and return ratios going ahead. Overall outlook remains strong going forward however the brokerage looks for better price entry point, factoring in margin of safety.

Promoter/FII Holdings
Promoters held 81.41 per cent stake in the company as of 31-Dec-2022, while FIIs owned 0.96 per cent, DIIs 10.52 per cent.