Canara Bank Receives 'Buy' Rating from MarketsMOJO, Showcasing Strong Fundamentals and Consistent Growth

Canara Bank, one of the leading public banks in India, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as a result of the company's strong provisioning practices, with a Provision Coverage Ratio of 61.19%. This indicates that the bank has set aside enough funds to cover any potential losses, making it a safe and reliable investment option.
In addition, Canara Bank has shown healthy long-term growth, with its Net Interest Income (excluding other income) growing at an annual rate of 21.41% and its net profit at an impressive 111.12%. The company has also declared positive results for the last 16 consecutive quarters, showcasing its consistent performance.

The bank's financial indicators also paint a positive picture, with its Gross NPA (non-performing assets) at a low of 4.23%, and its Net Interest Income and Interest Earned at their highest levels at Rs 9,580.20 crore and Rs 28,807.35 crore respectively. This further solidifies Canara Bank's position as a strong and stable player in the public banking sector.

From a technical standpoint, the stock is currently in a bullish range and has generated a return of 3.15% since its bullish trend began on 07-May-24. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, also indicate a bullish trend for the stock.

Moreover, with a ROA (return on assets) of 1, Canara Bank is fairly valued with a price to book value of 1.2. The stock is also trading at a fair value compared to its average historical valuations. In the past year, while the stock has generated a return of 96.01%, its profits have risen by 37.3%, resulting in a low PEG (price/earnings to growth) ratio of 0.2.

Another positive aspect of Canara Bank is its high institutional holdings at 24.96%. This indicates that these investors have better capabilities and resources to analyze the fundamentals of companies, making their investment in Canara Bank a strong vote of confidence.

Lastly, Canara Bank has consistently outperformed the BSE 500 index in the last 3 years, further solidifying its position as a reliable and profitable investment option. With all these factors in mind, it is no surprise that MarketsMOJO has upgraded its stock call on Canara Bank to 'Buy'.