Comments
Arihant Capital
Bank of Baroda (Buy)
CMP: ₹160.5
Target: ₹212
Bank of Baroda is engaged in providing various services such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services and treasury services.
Bank of Baroda has entered into an agreement with UniCredit SPA, Baroda Pioneer Asset Management Company Ltd and Baroda Pioneer Trustee Company Pvt Ltd to acquire a 51 per cent stake in both the asset management and trustee company.
Pursuant to the share purchase agreement (SPA), the Bank will be purchasing from its joint venture partner, UniCredit, their entire equity stake of 51 per cent in the Baroda Pioneer AMC and the Trustee Company. Post the acquisition, Bank of Baroda will become the sole shareholder of the AMC and the Trustee Company and sole sponsor of the Baroda Pioneer Mutual Fund.
Valuation: We have valued stock on P/ABV(x) of 2.1(x) on its FY 19E ABV of ₹101 a share and have arrived at fair value of ₹212.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.