Canara Bank (CANBK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bank Of Baroda

Canara Bank

Bank Of India

Bank of Maha

Indian Bank

Punjab Natl.Bank

Union Bank (I)

I O B

SBI

Central Bank

UCO Bank

Why is Canara Bank ?

Strong lending practices with low Gross NPA ratio of 2.35%

Strong Long Term Fundamental Strength with a 61.43% CAGR growth in Net Profits

Healthy long term growth as Net profit has grown by an annual rate of 61.43%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CF(Y) Highest at Rs 59,946.57 Cr
GROSS NPA(Q) Lowest at 2.35%
DPS(Y) Highest at Rs 4.00

With ROA of 1.1, it has a Attractive valuation with a 1.2 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 35.59%, its profits have risen by 21.5% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Canara Bank should be less than 10%
Overall Portfolio exposure to Public Sector Bank should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Public Sector Bank)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Canara Bank for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Canara Bank

37.63%

1.23

28.94%

Sensex

4.55%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Net Interest Income Growth (5y)

16.96%

Net Profit Growth (5y)

61.43%

Advance to Deposit

70.37%

Capital Adequacy Ratio (Tier 1)

13.47%

Gross NPA (latest)

2.35%

Gross NPA (avg)

5.13%

Coverage Ratio (avg)

70.78%

Cost to Income (avg)

46.60%

Net Interest Margin (avg)

2.52%

Operating Profit to Assets (avg)

3.89%

ROA (avg)

0.79%

Net Debt to Equity (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Price to Book Value

1.23

PEG Ratio

0.33

Dividend Yield

2.72%

ROE (Latest)

17.21%

ROA (Latest)

1.06%

Net NPA to Book Value

5.65

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

OPERATING CF(Y)

Highest at Rs 59,946.57 Cr

GROSS NPA(Q)

Lowest at 2.35%

DPS(Y)

Highest at Rs 4.00

PAT(9M)

At Rs 14,528.65 cr has Grown at 24.42%

INTEREST EARNED(Q)

Highest at Rs 31,543.89 cr

NET NPA(Q)

Lowest at 0.54%

DPR(Y)

Highest at 21.31%

-4What is not working for the Company

PBT LESS OI(Q)

At Rs -819.88 cr has Fallen at -368.8% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 113.15 % of Profit Before Tax (PBT

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Here's what is working for Canara Bank

Gross NPA - Quarterly

Lowest at 2.35% and Fallen

each quarter in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Gross NPA (%)

Operating Cash Flow - Annually

Highest at Rs 59,946.57 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Interest Earned - Quarterly

Highest at Rs 31,543.89 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Interest Earned (Rs Cr)

Net NPA - Quarterly

Lowest at 0.54% and Fallen

each quarter in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Net NPA (%)

Profit After Tax (PAT) - Latest six months

At Rs 9,525.99 cr has Grown at 20.28%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Dividend per Share (DPS) - Annually

Highest at Rs 4.00 and Grown

each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 21.31%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Canara Bank

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -819.88 cr has Fallen at -368.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -174.88 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 113.15 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

CAR - Quarterly

Lowest at 16.20%

in the last five quarters

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)