Jhunjhunwala Portfolio: Shares of Canara Bank hit a 52-week high. Buy or Sell?

 

• Rakesh Jhunjhunwala portfolio stock Canara Bank may go up to ₹380 level by end March 2023, feel experts

Rakesh Jhunjhunwala Portfolio: Canara Bank shares have been in an upward trend since last six months as the PSU banking major has gained almost 80 per cent in this time horizon. However, it seems that this banking stock has steam left as Canara Bank share price hit a 52-week high in morning deals today. The share price of Canara Bank opened with an uptrend today and hit a new high of ₹340.40 within minutes of market opening.

According to stock market experts, the rally in Canara Bank shares can be attributed to three fundamental reasons – RBI's positive outlook for PSU banks, pre-budget discussions in affordable housing segment, fall in Can Fin Homes and bullish Bank's margin improving due to market interest rate regime. He added that ₹315 level would be a good buying range for Canara Bank shares and one can hold the stock for a three-month target of ₹370 to ₹380.

Speaking on the reasons for the rise in Canara Bank shares, Ravi Singhal, CEO, GCL Securities said, "Last week, RBI has given positive outlook for PSU banks. Today's rally in Canara Bank shares despite low volumes at the broker This is the major reason for the closure of Street and international market. Also, the fast interest rate regime is going to improve the margin of Canara Bank and other banks as well. So, this bull run in Canara Bank is expected to continue till March 2023. Is.

"Budget 2023 will be the last full-fledged budget before the next Lok Sabha elections. Hence, the market is expecting some big announcement for affordable housing," said Avinash Gorakshkar, Head of Research, Profitmart Securities, on fundamentals that have supported the continued rally in Canara Bank shares. Is." segment where Can Fin Homes, a subsidiary of Canara Bank, is a big player. Hence, market is positive on both Canara Bank and its subsidiary which is helping the banking stock to maintain its bull trend."

Advising Canara Bank shareholders to hold the stock going forward, Ravi Singhal of GCL Securities said, "Canara Bank shares can go towards ₹370 to ₹380 levels, giving double digit return to its shareholders by the end of March 2023." Hence, Canara Bank shareholders are advised to hold the stock and keep accumulating till the stock trades above ₹310 level and maintain a stop loss at ₹297. "

Canara Bank Share Price Target

For new investors, Ravi Singhal advised them to maintain 'Buy on Dips' strategy and said, "315 will be a good level to buy for new investors. However, those who have high risk appetite can buy at current levels." Can buy and hold the stock till the stock moves above ₹310 level. However, they should also maintain stop loss at ₹297 per share level."

Rakesh Jhunjhunwala's stake in Canara Bank

As per the shareholding pattern of Canara Bank for the July to September 2022 quarter, Rakesh Jhunjhunwala holds 2,68,47,400 shares of Canara Bank, which is 1.48 per cent of the total paid-up capital of the PSU bank. The shareholding pattern of PSU Bank for October to December 2022 is still awaited.

Canara Bank shares have generated alpha returns in the last one year by outperforming major benchmark indices during the same period. Canara Bank shares have gained 65 per cent in the last one year.

The Nifty 50 index gained 2.72 per cent, while the 30-stock index BSE Sensex gained 2.80 per cent. However, the Nifty Bank index outperformed the major benchmark indices by a wide margin in 2022 as the banking index gained up to 21 per cent in the past year. However, the broad market indices lagged behind in terms of giving returns. The Small-Cap index ended 2022 down by 3 per cent, while the BSE Mid-Cap index ended 0.30 per cent higher.