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Buy Bank of Baroda: Motilal Oswal

Posted on: June 9th, 2009 and is filed under Brokerage Recommendations.

Motilal Oswal has recommended a buy rating on Bank of Baroda in its report June 04, 2009. “We expect Bank Of Baroda to report EPS of Rs 61 in FY10 and Rs 69 in FY11, an FY09-11 CAGR of 7%. Book Value would be Rs 365 in FY10 and Rs 418 in FY11.

The stock trades at 1.1x FY10 BV and 6.7x FY10 EPS. We like BoB for its inherent strengths of large branch network, technological advancements, strong international business, extensive client base, relatively low risk loan book and clean asset quality. BoB is our preferred bet among state-owned banks, Buy,” says Motilal Oswal’s research report.

source: Moneycontrol

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