Stocks to bu Marathi News: World brokerage firm UBS by Canara Bank’s Shares’The coverage has been started with the by ‘rating. In a report released on Wednesday, October 7, the Brokerage has fixed the target price of 90 for Canara Bank’s shares. This means that the stock is expected to increase by approximately 5 percent for stock at a closed price on Tuesday.
According to the UBS report, Canara Bank Currently for sustainable debt growth Is in good condition. This is due to the situation in the favorable area, the improved liquidity and the low debt-to-drop ratio (LDR). The report states that the bank’s net interest margin (NIM) may remain under pressure in the near future due to the reduction of interest rates, but it is expected to improve from the financial year 1-5. This is due to the increasing proportion of deposits and the increasing amount of MCLR-based loans.
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UBS estimates that the bank’s credit costs will be controlled by the contribution of unsafe retail loans to the bank’s portfolio. Therefore, Canara Bank’s property returns (ROA) are expected to remain stable at 5% in the financial year, while the RoE (ROE) is estimated to be about 5%.
With attractive values
According to the UBS, the evaluation of the Cana Bank is also attractive. The bank currently transactions its one-year Forward Price-to-book valley by 1.5 times, which is reasonable to take into account its steady growth and low risk.
Listing of two subsidiaries of the bank to increase the price of the share price
The UBS also said that listing of two bank subsidiaries can be a major trigger for stock prices to rise. The IPO of the Canara Robaco AMC is opening on Thursday, while the Canara HSBC Life Insurance IPO is expected to start on Friday. The brokerage says that both listings are likely to expose the hidden value of the bank, which will positively affect the target price.
However, UBS has also listed some of the risks to investing in Can Can Canter’s bank shares. These include increasing credit costs and potential slowdown in debt growth. If these factors are actually, the bank’s return may be pressure.
The status of shares
On Wednesday, October 7, at around 4pm, Canara Bank’s shares were falling on NSE by 8.5 per cent to 9.99. However, in the last month, the share has increased by about 5 percent. In the last six months, he has given more than 5 percent return.
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