BackRakesh Jhunjhunwala's new portfolio stock surges 10% today. Should you buy?
Rakesh Jhunjhunwala bought 1.60% stake in the company during the September quarter, recent shareholding pattern showed
PremiumShares of Canara Bank surged over 10% on the BSE to ₹215 apiece on the BSE in Friday's trading session. Earlier this week, the state-run bank had reported a three-fold jump in its standalone profit-after-tax at ₹1,333 crore in the quarter ended September, aided by lower bad loan provisioning, rise in non-operating profit and recovery from DHFL resolution.
The bank's cash recovery stood at ₹3,002 crore and upgradation at ₹2,671 crore as it recovered ₹1,700 crore from Dewan Housing Finance Ltd (DHFL's) resolution.
“Canara bank hit a 21-month high after it rallied 10 per cent on the back of heavy volumes. For July-September quarter (Q2FY22), Canara Bank had posted a 200 per cent rise in net profit at ₹1,333 crore on robust growth in non-interest income including revenue from trading and recoveries. Net NPAs also reduced. Investor may take long position on dips for the target of 220 in near term," said Ravi Singh, Head of Research & Vice President, ShareIndia.
Canara Bank's Q2 gross non-performing assets (GNPA) ratio increased to 8.42 per cent from 8.23 per cent in September quarter of fiscal 2021. Whereas, its net NPA reduced to at 3.21 per cent against 3.42 per cent.
Brokerage firm Motilal Oswal in a result note on Tuesday maintained Buy rating to the PSU bank stock as it said that Canara Bank reported healthy earnings for 2QFY22, supported by higher treasury gains and recovery from the DHFL resolution. It has a target price of ₹270 per share.
As per Canara Bank's shareholding data on the BSE, Rakesh Jhunjhunwala, who is known as the ‘Big Bull’ as his portfolio is tracked closed by market participants, holds 1.60% stake or 2,90,97,400 shares as of September 2021. He did not hold any stake in the PSU in the June quarter.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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