The shares of Canara Bank gained 2.33% on Monday’s early trades to reach an intraday high of ₹ 327.90 after an ace investor increased their stake in the state-run lender. According to the shareholding pattern of the bank, the ace investor has bought 1,07,20,200 shares.
Late market mogul Rakesh Jhunjhunwala’s estate including shares and property has been passed on to his family. After the legendary investor passed away on August 14, 2022, his wife, Rekha Jhunjhunwala has been managing their stock portfolios.
According to regulatory filings, Rekha Jhunjhunwala’s shareholding in Canara Bank has increased to 2.07% as of December 31, 2022. Earlier, Rakesh Jhunjhunwala had invested in the PSU Bank and held a 1.48% stake, which has now been transferred to his spouse. The latest investment indicates an increase of 0.59%. Rekha Jhunjhunwala’s holding in the bank is worth ₹ 1,205 crores.
The shares of Canara bank rallied 50.91% in the past six months. They had reached a 52-week low of ₹ 171.75 apiece on June 20, 2022, and have almost recovered by 100% from that point. They hit a 52-week high of ₹ 341.60 apiece on January 03, 2023.
Axis Securities has a buy call on the shares of Canara Bank with a target price of ₹ 375.00 apiece. The analyst has given a time period of 3-4 weeks when the lender’s shares can reach the given target.
Canara Bank has been operating for more than 110 years. Its business segments include treasury operations, retail banking operations, wholesale banking operations and other banking operations.
It is a large-cap bank with a market capitalization of 58,134 crores. Its shares are trading at a price-to-earnings ratio of 6.87, which is lower than the industry average of 9.67. This indicates that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
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