Breakout Stock Under Rs 100: This Banking Stock Rallied Over 10 per cent and Breaks Out from Long Consolidation; Keep It on Your Radar

The company’s shares have delivered an impressive return of around 70 per cent in the past 1 year.

This Large-Cap company is involved in monetary intermediation, including commercial banking, savings banking, postal savings banking, and discount houses. Today, the stock rallied over 10 per cent and nearly reached its 52-week high. The current 52-week high price is Rs 98.70 per share, while today’s high on the BSE was Rs 98.50 per share.

The stock of IDBI Bank Ltd had been in a long consolidation phase for approximately 170 days, trading within a range between Rs 75 and Rs 99. However, today it broke out of this range, closing at around Rs 97.50 per share. The trading volume during today’s session was also significant, which is evident from the volume bar on the chart presented in the article.

Financial Performance

As per the Quarterly Results, IDBI Bank Ltd reported a 40 per cent year-on-year (YoY) increase in its net profit, reaching Rs 1,719 crore for the first quarter ended June 2024 (Q1 FY25). This growth was attributed to a significant reduction in provisions and taxes. In the same quarter of FY24 (Q1 FY24), the bank had recorded a net profit of Rs 1,224 crore.

Provisions and taxes decreased by 80 per cent YoY, totalling Rs 356 crore in Q1 FY25, compared to Rs 1,795 crore in Q1 FY24, according to the bank's statement. However, net interest income (NII) fell by 19 per cent YoY to Rs 3,233 crore in Q1 FY25, down from Rs 3,998 crore in the same quarter the previous year. The decline in NII was partly due to a significant interest recovery from non-performing assets (NPAs) amounting to Rs 1,000 crore in Q1 FY24. The bank's net interest margin (NIM) also decreased to 4.18 per cent in Q1 FY25, compared to 5.8 per cent in Q1 FY24.

Investors must keep this large-cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.