Bank Of Baroda Receives 'Hold' Rating from MarketsMOJO, Shows Strong Fundamentals and Fair Valuation

Bank Of Baroda, one of the largest public sector banks in India, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong provisioning practices, with a Provision Coverage Ratio of 71.26%, and its long-term fundamental strength, with a 83.28% CAGR growth in net profits.
The stock is currently trading at a fair value compared to its historical valuations and has shown a healthy long-term growth rate, with an annual net profit growth of 83.28%. Its ROA of 1.2 also indicates an attractive valuation with a 1 Price to Book Value.

Institutional holdings in the company are at a high of 26.47%, indicating that these investors have better capability and resources to analyze the company's fundamentals compared to retail investors. With a market cap of Rs 1,31,663 crore, Bank Of Baroda is the second largest company in the public bank sector, constituting 7.88% of the entire sector. Its annual sales of Rs 118,080.54 crore make up 10.18% of the industry.

However, the company's recent results for the quarter ending September 2024 have been flat, with a decrease of 31.8% in PBT LESS OI(Q) at Rs 1,959.89 crore. Its cash and cash equivalents (HY) have also decreased to the lowest at Rs 54,420.70 crore. Additionally, the non-operating income (Q) is 72.56% of the profit before tax (PBT).

Technically, the stock is currently in a mildly bearish range, with multiple factors such as MACD, KST, DOW, and OBV showing a mildly bearish trend. Overall, while Bank Of Baroda has shown strong fundamentals and a fair valuation, its recent financial results and technical indicators suggest a cautious approach for investors.