Experts give ‘buy’ tag to this multibagger stock

According to stock market experts, this multibagger stock in Rakesh Jhunjhunwala portfolio looks positive on chart pattern and it may go up to ₹250 per share levels in next one month. They said that Canara Bank shares have strong support at ₹205 and recent correction in the banking counter has created good buying opportunity for stock market investors.

Advising ‘buy on dips’ strategy in this multibagger stock of Rakesh Jhunjhunwala’s portfolio; Sumeet Bagadia, Executive Director at Choice Broking said, “Canara Bank share price has gone through some correction that makes it an ideal buy on dips stock for positional investors. One can buy Canara Bank shares at current market price for immediate short term target of ₹235. One can hold this counter for one month target of ₹250 as well keeping stop loss at ₹205.”

Speaking on the fundamentals of Canara Bank; Anand Dama, Research Analyst at Emkay Global said, “Despite moderate credit growth of 6 per cent yoy and soft NIMs, Canara Bank reported a strong beat on PAT at ₹13.3bn against our estimate of ₹8.8bn, mainly helped by higher treasury income, contained provisions and cash recovery from DHFL. The bank has guided for 7-8 per cent loan growth and lower slippages of near 1.7-1.8 per cent in FY22, which, coupled with the transfer of NPAs to NARCL, should lead to a further reduction in GNPAs.” He also advised investors to buy Canara Bank shares for long-term.

Rakesh Jhunjhunwala holding in Canara Bank

According to Canara Bank shareholding pattern for July to September 2021 quarter, Rakesh Jhunjhunwala holds 2,90,97,400 shares or 1.60 per cent stake in this public sector bank.

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