Following the release of Canara Bank Ltd.'s fourth-quarter earnings for the fiscal year 2026, leading brokerage firms have begun recalibrating their assessments and price targets for the state-owned lender's stock. The shares experienced a slight downturn in Wednesday's trade after the results.
Brokerage Insights on Canara Bank Stock
PL Capital, a prominent brokerage firm, upgraded Canara Bank's stock rating to 'Accumulate' from 'Hold'. While the firm slightly adjusted its target price downward from Rs 160 to Rs 150, it highlighted a "Good quarter" driven by superior net interest income (NII), improved net interest margin (NIM), and reduced operating expenses. PL Capital noted that the bank's core pre-provision operating profit (PPoP) surpassed estimates by nearly 13%. The brokerage also pointed to Canara Bank's comfortable loan-to-deposit ratio (LDR) of 77.8%, positioning it favorably among peers for future credit expansion. Furthermore, sequential margin improvements were attributed to declining deposit costs and an 8.6% quarter-on-quarter growth in retail advances.
Meanwhile, Equirus Securities also revised its rating for Canara Bank's stock, upgrading it to 'Long' from 'Add'. Equirus set a March 2027 target price of Rs 155. The firm characterized the quarter as having "Soft growth, stable margins," which led to a minor 2% cut in its FY27 earnings estimates. Equirus acknowledged that Canara Bank trades at a supportive 0.9x FY28 adjusted book value, yet cautioned that a weak Current Account Savings Account (CASA) profile continues to exert pressure on margins. Management's guidance for conservative FY27 growth projects advances at 11-12% and deposits at 9-10%.
Rekha Jhunjhunwala's Stake in Canara Bank
Investors continue to monitor the stake held by Rekha Jhunjhunwala, wife of the late renowned investor Rakesh Jhunjhunwala. As per the March quarter shareholding pattern, she maintains a significant 1.54% stake in Canara Bank, which translates to 13.99 crore shares in the public sector bank.
The varying perspectives from these brokerages offer investors different angles to consider when evaluating Canara Bank's performance and future potential in the market.