Bank of Baroda shares hit lifetime high after 20% rally in YTD. Experts see more upside

Stock market today: Bank of Baroda shares have given strong upside movement in the post-COVID rally. After a heavy sell-off during the pandemic fear, BoB share price bottomed out at around ₹37.50 apiece level in May 2020. The PSU bank stock started ascending upside from mid-October 2020 and since then it has remained an ideal 'buy on a dip' stock on Dalal Street. However, it seems that the bull run in the Bank of Baroda share price is still not over. BoB share price has been hitting a lifetime high for the last three straight sessions. BoB share price today opened upside at ₹283.85 and went on to touch an intraday high of ₹285.60 per share on NSE. So, in the post-COVID rebound, BoB share price has ascended from ₹37.50 to ₹285.60 apiece, logging a nearly 650 percent rise in nearly four years. In YTD time, BoB share price has surged over 20 percent.

According to stock market experts, BoB shares are rising as they are available at comparatively lower valuations against the valuations at which the Indian stock market is trading in the current scenario. They said that valuations of the BoB shares are still attractive in comparison to its peers. From a fundamental perspective, BoB is expecting a rise in the business volume as it has been continuously announcing fundraise. They said that BoB share price may go up to ₹300 in the near term and advised long-term investors to hold the scrip. But, they strictly advised BoB shareholders to maintain a trailing stop loss at ₹270 apiece level.

Why BoB share price is skyrocketing?

Speaking on the reasons that are fueling BoB shares, Saurabh Jain, Vice President — Research at SMC Global Securities said, "Bank of Baroda shares are ascending these days because the state-owned bank stock is still available at attractive valuations against the valuations at which the Indian stock market is currently existing. They said that BoB shares are available at an attractive valuation against its peers, especially the private sector banks. So, bulls are still putting their bet behind the BoB shares."

On the fundamentals that are instrumental in the BoB share price rally, Saurabh Jain said, "The PSU bank has recently announced fundraising on more than one occasion, which signals that the state-owned bank is expecting its business to sustain if not rise in the medium to long-term. Apart from this, corporate lending by the PSU bank is expected to pick up after the Lok Sabha elections as developmental infrastructure projects are expected to pick up momentum after the Lok Sabha polls."

BoB share price target

Expecting further upside in BoB shares, Sumeet Bagadia, Executive Director at Choice Broking said, "BoB shares are looking positive on chart pattern and it may soon touch ₹290 and ₹300 per share level. Those who have Bank of Baroda shares in their portfolio are advised to hold the scrip maintaining stop loss at ₹270 apiece level."

On the suggestion to fresh investors regarding Bank of Baroda shares, Sumeet Bagadia said, "Fresh investors can buy BoB shares at current market price and keep on adding till the stock is trading above ₹270 apiece level. However, they must maintain stop-loss at ₹270 per share level and hold the scrip for a short term target of ₹300 per share."

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.