BoM shares jump 5%; Geojit projects further 19% upside; here's why

Shares of Bank of Maharashtra (BoM) surged 5.48 per cent in Monday's session, touching a day high of Rs 57.35. Geojit Investments has issued a 'Buy' call on the stock at Rs 54–57 levels, setting an upside target of Rs 68. This implies a potential gain of 18.57 per cent from the day's peak.

BoM has reported a strong financial performance for FY25, driven by steady growth in advances, improved margins and robust asset quality. According to Geojit, the bank's fundamentals and technical setup suggest further upside potential for the stock.

The lender's net interest income (NII) for FY25 grew by around 19 per cent year-on-year (YoY) to Rs 11,666 crore, powered by an 18 per cent growth in advances and improved net interest margins.

BoM's net interest margin (NIM) improved to 4 per cent in FY25, up 8 basis points (bps) from 3.92 per cent in FY24. Return on assets (RoA) also rose by 25 bps YoY to 1.75 per cent, underscoring more efficient asset utilisation.

The bank's RAM (Retail, Agriculture, MSME) portfolio saw a healthy 19.68 per cent YoY growth. Retail loans surged 25.38 per cent YoY to Rs 64,853 crore, while MSME advances increased 14.84 per cent to Rs 48,369 crore.

Profit after tax (PAT) jumped nearly 36 per cent YoY to Rs 5,520 crore in FY25. Net profit margin stood at 19.4 per cent, while operating margin came in at 32.8 per cent, highlighting strong bottom-line performance.

BoM also reported improvement in asset quality, with gross NPA falling to 1.74 per cent in FY25 from 1.88 per cent in FY24. Net NPA declined to 0.18 per cent, supported by a high Provision Coverage Ratio (PCR) of 98.3 per cent, reflecting prudent risk management practices.

The stock is currently trading at a price-to-book (P/B) ratio of 1.5x. For FY25, BoM has posted a healthy return on equity (RoE) of 23 per cent, along with the 1.75 per cent RoA.

From a technical perspective, Geojit highlighted that the BoM stock has built a strong base in the Rs 45–50 range and has since staged a sharp reversal. "On the weekly chart, both RSI and MACD are trending positively, reinforcing the broader bullish outlook," Geojit stated.

With a solid financial foundation and favourable chart patterns, analysts at Geojit remain optimistic about the stock's prospects in the near to medium term.