Home / Markets / Stock Markets /  Rakesh Jhunjhunwala portfolio: Experts give buy tag to this PSU banking stock

Rakesh Jhunjhunwala portfolio: After infrastructure focused budget, stock market analysts are highly bullish on public sector banking stocks as they have no dearth of liquidity and after the huge rise in credit line demand by infra sector companies, business volume of these banks are expected to leap frog in upcoming quarters. However, if the PSU bank is able to beat the Dalal Street estimates while announcing its Q3 earnings, then it is bound to attract attention of stock market investors. Canara Bank shares are one such stock that has given sharp upside move in the last one month and it has reported strong Q3 results as well. Aprt from this, it has investment from ace investors like Rakesh Jhunjhunwala.

Speaking on strong fundamental indicators for this Rakesh Jhunjhunwala stock; Anand Dama, Senior Research Analyst at Emkay Global Financial Services said, "Canara Bank continued to report a healthy PAT (Profit After Tax) of 15 billion (market estimate was 11 billion), mainly aided by better margins and lower LLP, partly offset by lower treasury gains, a one-time hit on family pension ( 13.5 billion) and higher tax outgo. Overall credit growth improved to 9 per cent year-on-year (YoY) and 6.6 per cent quarter-on-quarter or QoQ, in line with systemic growth, mainly driven by strong corporate growth (11 per cent YoY/9 per cent QoQ). Canara Bank indicates that corporate growth is more structural and sustainable, with a pickup in infra activity and demand from core sectors and NBFCs."

Anand Dama of Emkay Global went on to add that there can be gradual increase in Return on Equity (RoE) and Return on Asset (RoA) of Canara Bank and advised investors to add this Rakesh Jhunjhunwala portfolio stock in one's portfolio.

Suggesting stock market investors to buy this Rakesh Jhunjhunwala stock; Sumeet Bagadia, Executive Director at Choice Broking said, "Canara Bank shares look positive on chart pattern. It has recently made its new 52-week high as well and uptrend in the stock is expected to continue further in near term. One can buy this counter at current market price for immediate target of 275 maintaining stop loss at 250 apiece levels."

Rakesh Jhunjhunwala shareholding in Canara Bank

As per Canara Bank's shareholding pattern for recently ended December 2021 quarter, Rakesh Jhunjhunwala holds 2,90,97,400 shares, which is 1.60 per cent of total issued paid up capital of the PSU bank.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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