Bank of Baroda (BoB) share price at 9-year high. Experts see more rally

Bank of Baroda (BoB) shares have remained an ideal 'buy on dips' stock for investors since February 2023. Bank of Baroda shares bottomed out at around ₹155 in first week of February and since then it has been climbing to new highs on a regular basis.

Following this trend, BoB share price today surged to a new 52-week high of RS 227.55 apiece on NSE and came close to its life-time high of ₹228.90 per shares that it had made in January 2015. So, while climbing to a new 52-week high, BoB share price came close to 9-year high during Monday stock market deals. However, experts are expecting more upside in this PSU bank share.

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According to stock market experts, Bank of Baroda board has declared to generate fund to the tune of ₹2500 crore via Basel III bonds. This bond is the major reason for this state-owned banking stock climbing to its 9-year high. They said that a bank issues such long-term maturity bonds when they see credit growth.

So, this Capex growth is the major reason for rise in BoB share price today. They went on to add that BoB is a 'portfolio stock' and one should keep this stock for at least one to two years.

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Why BoB share price is skyrocketing

Speaking on the reasons that has fueled Bank of Baroda shares these days, Sandeep Pandey, Founder & Director at Basav Capital saod, “Recent buzz in PSU bank stocks after government of India's focus on infrastructure is one of the major reason for continuous uptrend in the BoB shares. However, on 15th December 2023, the state-owned bank has declared to raise ₹2500 ore fund through issuance of Basel II bonds. Generally, a PSU bank issues such a long-term maturity (10-year) bonds when they see credit growth in this time. So, bank has raised its Capex and market is expecting this Capex rise further in coming times. So, BoB shares are more a portfolio stock than a trading stock.”

Bank of Baroda share price target

Expecting this uptrend to further continue, Sumeet Bagadia, Executive Director at Choice Broking said, "BoB share price is looking positive on chart pattern and it may go up to ₹240 to ₹250 apiece levels in near term. So, those who have this stock in portfolio, should hold the stock for above-mentioned target maintaining stop loss at ₹215 per share levels."

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On suggestion to fresh investors, Sumeet Bagadia recommended 'buy on dips' strategy citing, "Fresh investors should start buying from current levels and keep on accumulating on every 5-7 per cent maintaining stop loss at ₹215 per share levels."

However, Sandeep pandey of Basav Capital advised BoB shareholders and fresh investors to hold Bank of Baroda shares for for long. He gave 'portfolio stock' tag to BoB shares citing, "One should hold the scrip for one to two years as the stock may go up to ₹450 apiece levels in next two years."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.