BOB share price: Analysts noted that BOB has continued to demonstrate robust growth in business and earnings led by improvement in net interest income (NIM) and lower credit cost. 
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BOB share price: Analysts noted that BOB has continued to demonstrate robust growth in business and earnings led by improvement in net interest income (NIM) and lower credit cost. Shares of Bank of Baroda (BOB) climbed over 3 per cent in Monday's trade to hit a Rs 1,00,000 crore in market capitalisation (m-cap). State Bank of India (SBI) is the only other PSU bank commanding a market capitalistaion (m-cap) of Rs 1 lakh crore or more. Private lenders such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and IndusInd Bank enjoy a m-cap of up to Rs 9 lakh crore.
The stock rose 3.13 per cent to Rs 194 on BSE. The stock was commanding a m-cap of Rs 1,00,634.71 crore. Bank of Baroda shares have an average target price of Rs 216, as per Trendlyne, which suggests an 11 per cent potential upside ahead for the state-run banking stock.
Analysts noted that BOB has continued to demonstrate robust growth in business and earnings led by improvement in net interest income (NIM) and lower credit cost.
In a note last month, ICICIdirect said the PSU bank may report credit growth in line with industry growth coupled with healthy margins and steady asset quality and, thus, aid return on asset (RoA) of 1 per cent. It valued the stock at Rs 220 per share based on 0.9 times estimated FY25 adjusted book value.
Bank of Baroda is among leading PSU banks with a global loan book of Rs 9.7 lakh crore and has better operating metrics among PSBs, the brokerage said. The lender has Pan-India presence with 8,200 branches and has a meaningful presence in international operations with its JVs and subsidiaries accounting of 18 per cent of total business.
LKP Securities expects BOB to post a ROA of 1 per cent and return on equity (RoE) of 1 per cent and RoA of 15.2 per cent by FY24E, led by steady balance sheet growth along with higher PCR and improving asset quality. It values the standalone bank t 1 time FY25E adjusted book value per share to arrive at a price target of Rs 239.
"We believe PSU banks are finally out of the NPA mess, which they were facing over the last 7-8 years, Bank of Baroda like other PSU banks has also cleared its balance sheet and asset quality is now at decadal best. We believe going forward credit cost will be benign and advances growth will be healthy. It is trading at 0.8 time FY25 ABV on RoE/RoA of
over 1 per cent/15-16 per cent. We are positively biased on the stock," Dalal & Broacha Stock Broking said last month. This brokerage gas a target of Rs 230 on BOB stock.
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