Brokerages increase target price for Bank of Baroda. Should you buy?

After the Q4 results, have been viewing the stock positively. Here’s what they have to say:


The global brokerage firm stated that there was a steady growth in loans which was lifted by non-core lines while slippages were a little higher. However, Jefferies anticipates that this might normalize from here.

The brokerage firm upgraded the bank from ‘underperform’ to ‘’ with a new target of Rs 310, from an earlier Rs 88.


The brokerage firm said that they expect BOB to continue to deliver on its of 1%+ story driven by continued momentum, stable margins and low credit costs. They built a loan growth of 15% over FY24-26e and an average RoA/RoE of 1.1%/15.9% over FY25-26e. Valuations for BOB seem attractive to JMF at current levels of 0.9x BVPS.

They have maintained a ‘buy’ with a target of Rs 270.


With credit growth likely holding in the mid-teens, stable margins, and modest credit costs, earnings are likely to be strong. With a valuation of 1.1x P/ABV on the FY26e book, the brokerage has estimated the target price of Rs 294, with a ‘buy’ rating on the stock.


Although operating expenses are expected to remain elevated, Axis believes that the same would be offset by strong growth in NII and better asset quality, thereby allowing the bank to maintain Return on Assets (ROA) at 1% or higher over FY24-26E.

Axis maintains a ‘buy’ rating with a target price of Rs 340 on Bank of Baroda.


We are still in the early stages of this credit cycle and would be a bit cautious to turn negative on the worsening asset quality trends as yet.

“We have long argued that there is a low probability of BoB trading closer to SBI. We have now seen the discount expand to 20% and may perhaps expand more as there is a sharp divergence between the two,” added Kotak.

Valuing the bank at 1.1X (adj.) book and 8X FY2026 for RoEs of 14%. KIE has arrived at a target price of Rs 280 with an ‘add’ rating on the stock.

Motilal Oswal
BOB reported an overall steady quarter characterized by one-offs. Provisions were high as the bank has provided for its aviation exposure. Margins expanded 17bp QoQ to 3.27% and loan growth was healthy at 15% YoY and the bank expects loan growth of 12-14% in FY25.

The brokerage firm raised its FY25/FY26 EPS estimates by 1.9%/2.8% to account for stable margin and contained provisions. They have estimated FY26 RoA/RoE of 1.22%/17.3%.

Motilal reiterated its ‘buy’ rating with an increased target of Rs 300.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)