Canara Bank's stock has increased 119% since hitting a 52-week low earlier this year. On March 24, 2023, the public sector lender's stock hit a 52-week low of Rs 272.30. As of December 31, 2023, Rekha Rakesh Jhunjhunwala, the late investor Rakesh Jhunjhunwala's widow, controlled 37,597,600 shares, or 2.07%, in the public sector lender.
Thursday's closing price of the stock on the BSE was Rs 597.85, 0.32% less than its previous closing price of Rs 599.75. Canara Bank's market value was Rs 1.08 lakh crore. The banks shares reached a 52-week high of Rs 606 on March 6. Shares of Canara Bank have decreased by 1.34% since then.
A total of 1.23 lakh shares were exchanged, resulting in a Rs 7.36 crore turnover.
The price to book (P/B) ratio for the lender is 1.74. Comparable bank ratios include 1.57 for Bank of Baroda, 1.57 for PNB, and 5.42 for Indian Overseas Bank. The P/B ratio for SBI is 2.40.
Additionally, the state-owned lender's PEG ratio is 0.15. A stock is deemed undervalued if its PEG ratio is less than 1, while it is deemed overvalued if it is greater than 1.
The bank's debt to equity ratio for the third quarter of 2022 was 0.59, compared to 0.52 for the same period in 2022. A healthy ratio is one to 1.5 for debt to equity. Anything over two indicates that the company's debt to equity ratio is higher.
The return on assets ratio increased last quarter by 25 basis points to 1.01%.
The stock of Canara Bank has increased by 35% since the start of the year and by 95.60% over the course of a year.
Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, “Canara Bank saw a brief correction after peaking at Rs 597 and falling as low as Rs 538. The bank then showed signs of recovery with a bullish candle formation on the daily chart and support from the 20 DMA, closing the gap and rising above the previous high level. On the monthly chart, the RSI has crossed over 80, signifying an overbought area. At this point, some profit booking or consolidation cannot be completely ruled out. One might purchase this counter with a positional perspective and aim for an upside goal of Rs. 700–750 levels, but with a severe stop loss of Rs. 550 levels.”
With a target price of Rs 650, brokerage Motilal Oswal has issued a buy call on Canara Bank.
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's one-year beta is 0.7, indicating relatively little volatility over that time. Technically speaking, the Canara Bank stock's relative strength index (RSI) is 66.9, indicating that it is not trading in the overbought or oversold range. The moving averages of five, ten, twenty, thirty, fifty, hundred, 150, and 200 days are all being exceeded by the price of the banking stock.
Compared to a net profit of Rs 2,832 crore in the same quarter last year, the bank reported a 29% increase in profit in Q3 to Rs 3,656 crore. In comparison to the same period previous year, total revenues increased to Rs 32,334 crore in Q3. Over the quarter, the bank's net interest income increased by 9.5% to Rs 9,417 crore.
