Prabhudas Lilladher issued a buy rating for Canara Bank with a target price of Rs 160. The bank showed a strong quarter with healthy loan growth and better margins. Experts expect festive demand to help retail credit. They raised the target price after rolling forward their valuation to September 2028.
Prabhudas Lilladher's research report on Canara Bank CBK delivered a strong quarter with an all-round beat as core PPoP was 13.3% higher, led by better NII (superior NIM), fees and opex. Loan growth was healthy at 6.5% QoQ; excluding FCNR(B) related loans too, domestic credit growth was strong at ~5% QoQ mainly aided by corporate/agri. NIM may sustain at current level supported by (1) rise in corporate/agri loan yields (2) upcoming festive season that could spur demand for retail credit (3) low LDR at ~80% and (4) EBLR repricing. For FY27/28E we raise NIM by 7/6bps and core PAT by avg. ~6%. Outlook We keep multiple at 1.0x but raise TP to INR 160 from INR 150 as we roll forward to Sep'28 ABV. Retain 'BUY' For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Canara Bank - 1510026 - prabhu