Shares of Canara Bank have recovered 119% from their 52-week low touched last year. The stock of the public sector lender fell to a 52-week low of Rs 272.30 on March 24, 2023. Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 37,597,600 shares or 2.07 per cent in the public sector lender as on December 31, 2023.
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The stock ended 0.32% lower at Rs 597.85 on Thursday against the previous close of Rs 599.75 on BSE. Market cap of Canara Bank stood at Rs 1.08 lakh crore. On March 6, the banking stock rose to a 52 week high of Rs 606. Canara Bank shares have lost 1.34% since then.
Total 1.23 lakh shares changed hands amounting to a turnover of Rs 7.36 crore.
The lender has a price to book (P/B) ratio of 1.74. The ratio of its peers are Bank of Baroda (1.57), PNB (1.57) and Indian Overseas Bank (5.42). SBI has a P/B ratio of 2.40.
The state-owned lender also has a PEG ratio of 0.15. A stock having PEG less than 1 is considered undervalued and with PEG ratio above 1 is regarded as an overvalued one.
Debt to equity ratio of the bank in Q3 stood at 0.59 against 0.52 in the December 2022 quarter. A debt to equity ratio of 1 to 1.5 is considered healthy. Anything above 2 signals the company has more debt on its books compared to equity.
Return on assets ratio climbed 25 bps to 1.01% in the last quarter.
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Canara Bank shares have gained 35 per cent since the beginning of this year and risen 95.60 per cent in one year.
Shiju Koothupalakkal – Technical Research Analyst, Prabhudas Lilladher said, “Canara Bank has witnessed a short correction as from the peak of Rs 597 it made a low near Rs 538 levels and has indicated a bounce back with a bullish candle pattern in the daily chart and with support of 20 DMA, now trading above the previous peak level. The RSI on the monthly chart is now above 80, indicating an overbought zone. Some profit booking or consolidation can’t be ruled out at this level. With a strict stop loss of Rs 550 levels, one can buy with a positional view in this counter for an upside target of 700–750 levels.”
Brokerage Motilal Oswal has a buy call on Canara Bank with a target price of Rs 650.
Abhijeet from Tips2Trades said, “Canara Bank is bearish & overbought on the Daily charts with strong resistance at Rs 606. A daily close below support of Rs 584 could lead to Rs 542 in the near term.”
Canara Bank has a one-year beta of 0.7, signaling very low volatility during the period. In terms of technicals, the relative strength index (RSI) of the Canara Bank stock stands at 66.9, signaling the stock is trading neither in the oversold nor in the overbought zone. The banking stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
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The bank posted a 29 per cent rise in profit at Rs 3,656 crore in Q3 against a net profit of Rs 2,832 crore in the corresponding quarter a year ago. Total income climbed to Rs 32,334 crore in Q3 against Rs 26,218 crore in the corresponding period last year. Net interest income of the bank climbed 9.5 per cent to Rs 9,417 crore during the quarter.
