Shares of Bank of Baroda today hit a 17-week high on strong Q1 results. The stock jumped 9.1 per cent to Rs 150.45, its biggest percentage gain since February 12 and highest since April 17.
After posting a huge loss of Rs 3,102 crore in the preceding quarter, Bank of Baroda reported a turnaround performance, recording a standalone net profit of Rs 528 crore in the first quarter of FY2019 on the back of robust growth in retail and corporate advances.
Jefferies says: “We upgrade the stock to “buy” as we derive greater comfort on its asset quality as well as earnings capacity.’’
Ambi Capital says: “There appears to be some tangible progress on efforts to overhaul business processes and move towards better risk-adjusted profitability with improving loan growth.’’
Of 41 brokerages covering the stock, 33 rate it at “buy” or higher, 6 “hold” and two at “sell”; their median price target is Rs 180, according to Thomson Reuters data.
The stock had fallen 14.35 per cent this year as of last close.
(With inputs from Reuters)