Bank of Baroda (BoB) shares have shown significant upside movement in the post-COVID market recovery. Despite experiencing a substantial sell-off during the pandemic, BoB share price hit a low of around ₹37.50 per share in May 2020. Since mid-October 2020, the stock has been on an upward trajectory, establishing itself as a favorable ‘buy on dip’ option on Dalal Street. The recent bullish trend in Bank of Baroda’s share price has led to consecutive record highs over the last three sessions. Today, the stock opened at ₹283.85 and reached an intraday high of ₹285.60 per share on the NSE. Notably, in the post-COVID rebound, BoB share price has surged from ₹37.50 to ₹285.60 per share, marking an impressive nearly 650 percent increase in just under four years. Year-to-date, BoB share price has recorded a gain of over 20 percent.
Market experts attribute the rising trend in BoB shares to their comparatively lower valuations compared to the broader Indian stock market. They suggest that BoB shares remain attractively priced relative to their peers. Additionally, the bank’s continuous fundraising efforts indicate optimism about future business prospects. Analysts anticipate further upside in BoB share price, with a near-term target of ₹300 per share. Long-term investors are advised to hold the stock, with a recommended trailing stop loss at ₹270 per share.
Reasons Behind BoB Share Price Surge
Saurabh Jain, Vice President of Research at Motilal Oswal, highlights the attractive valuations of BoB shares compared to the broader market and its peers, particularly private sector banks. He emphasizes that investors continue to favor BoB shares due to these favorable valuations.
Fundamentally, the bank’s recent fundraising activities signal confidence in sustained or increased business volumes in the medium to long term. Additionally, anticipation of heightened corporate lending post-Lok Sabha elections, as developmental projects gain momentum, is expected to drive further growth in BoB share price.
Target Price and Recommendations
Sumeet Bagadia, Executive Director at Choice Broking, forecasts further upside potential for BoB shares, with targets of ₹290 and ₹300 per share. Existing shareholders are advised to maintain a hold strategy, with a stop loss at ₹270 per share.
For new investors, Bagadia suggests purchasing BoB shares at current market prices and adding more while the stock remains above ₹270 per share. A stop-loss at ₹270 per share is recommended, with a short-term target of ₹300 per share.
Disclaimer: The opinions and recommendations provided above represent individual analysts, experts, and brokerage firms, and not LegalParivar.com. Investors are advised to consult certified experts before making investment decisions.
