Bank Of Baroda is Rated Hold by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Bank Of Baroda indicates a balanced view of the stock’s prospects. It suggests that while the stock is not currently a strong buy, it remains a viable investment option for those seeking steady exposure to the public sector banking space. Investors should interpret this rating as a signal to maintain existing positions or consider cautious accumulation, rather than aggressive buying or selling.

Rating Update Context

The rating was revised on 07 February 2026, when the Mojo Score for Bank Of Baroda decreased by six points, moving from 74 (Buy) to 68 (Hold). This adjustment reflects a recalibration of the stock’s overall assessment based on updated data and market conditions. Importantly, all financial figures, returns, and fundamental indicators referenced in this article are as of 11 February 2026, ensuring that readers receive the most current evaluation.

Quality Assessment

Bank Of Baroda’s quality grade is classified as 'good', underpinned by its strong lending practices and asset quality. As of 11 February 2026, the bank maintains a low Gross Non-Performing Assets (NPA) ratio of 2.04%, which is a key indicator of prudent credit risk management. This low NPA level supports the bank’s ability to generate stable earnings and reduces the likelihood of significant credit losses, a critical factor for investors assessing risk.

Moreover, the bank has demonstrated robust long-term fundamental strength, with net profits growing at a compound annual growth rate (CAGR) of 52.20%. This impressive growth trajectory highlights the bank’s capacity to expand its profitability over time, driven by effective operational management and a growing loan book.

Valuation Perspective

From a valuation standpoint, Bank Of Baroda is rated 'very attractive'. The stock currently trades at a Price to Book (P/B) value of 1, which is considered fair and reasonable relative to its peers and historical averages. This valuation level suggests that the stock is neither overvalued nor undervalued, offering investors a balanced entry point.

Despite the attractive valuation, the Price/Earnings to Growth (PEG) ratio stands at 7.7, indicating that the stock’s price growth may be outpacing earnings growth. This metric warrants attention from investors as it signals that future earnings growth expectations are already priced in, which could limit upside potential in the near term.

Financial Trend Analysis

The financial trend for Bank Of Baroda is currently 'flat', reflecting a period of stabilisation in recent quarters. The latest quarterly results for December 2025 showed steady but unspectacular performance, with cash and cash equivalents at ₹49,950.13 crores and non-operating income constituting 54.73% of profit before tax. This high proportion of non-operating income suggests that core banking operations may be under pressure, which investors should monitor closely.

Nevertheless, the bank’s return on assets (ROA) remains at a solid 1%, reinforcing its ability to generate profits from its asset base. Institutional investors hold a significant 28.65% stake in the company, having increased their holdings by 0.93% over the previous quarter. This institutional confidence often reflects a positive long-term outlook and provides stability to the stock.

Technical Outlook

Technically, Bank Of Baroda is rated as 'mildly bullish'. The stock has delivered market-beating returns over various time frames, including a 36.01% gain over the past year and a 17.50% increase over six months as of 11 February 2026. Shorter-term performance shows some volatility, with a 1-day decline of 1.33% and a 1-month drop of 4.59%, but the overall trend remains positive.

The stock’s ability to outperform the BSE500 index over the last three years, one year, and three months underscores its resilience and appeal to investors seeking growth within the public sector banking segment.

Here's How the Stock Looks TODAY

As of 11 February 2026, Bank Of Baroda presents a compelling mix of strengths and cautionary signals. Its strong asset quality and impressive long-term profit growth provide a solid foundation. The valuation remains attractive, offering a reasonable price point for investors. However, the flat financial trend and reliance on non-operating income in recent quarters suggest that core earnings momentum may be subdued in the short term.

Investors should weigh these factors carefully. The 'Hold' rating reflects this nuanced outlook, signalling that while the stock is not a clear buy, it remains a worthwhile holding for those with a medium to long-term investment horizon. Monitoring upcoming quarterly results and macroeconomic developments will be crucial to reassessing the stock’s trajectory.

Investor Takeaway

Bank Of Baroda’s current 'Hold' rating by MarketsMOJO is a reflection of its balanced profile. The bank’s strong credit quality and long-term profit growth are offset by a flat recent financial trend and a valuation that, while attractive, incorporates expectations of future growth. The mildly bullish technical stance and significant institutional ownership add further context to the stock’s outlook.

For investors, this means maintaining a watchful stance: the stock is well-positioned for steady returns but may not offer significant near-term upside. Those already invested should consider holding their positions, while prospective investors might wait for clearer signs of financial momentum before committing fresh capital.

Overall, Bank Of Baroda remains a key player in the public sector banking space, combining solid fundamentals with a valuation that invites careful consideration. The 'Hold' rating encourages a measured approach, balancing opportunity with prudence in an evolving market environment.

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