Bank of Baroda - Buy

Company: Bank of Baroda
Broking House: Edelweiss Rating: Buy
Price Target: `951

Edelwiess recently met the top management of Bank of Baroda which reaffirmed its faith in the bank’s fundamentals. The management reiterated that it will be able to achieve 23-24 per cent growth in FY11. It also doesn’t expect margins to fall by more than 0.25 per cent from their current levels, as banks still enjoy pricing power. The past few months have seen the bank raise deposit rates as well as its base rate/PLR. On the whole, this action should help preseve margins. The bank’s asset quality is also strong. For instance, the exposure to the microfinance sector is just Rs 160 crore, and is primarily in West Bengal. Based on these factors, Edelweiss has rated the stock a ‘buy’.

Readers are recommended to consult their financial advisers before making any investment. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

Pattamal Plaza

3rd Cross Kamanahalli

BANGALORE 560084

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor