Rakesh Jhunjhunwala’s portfolio multibagger stock & FIIs bought 1,85,41,695 shares; Board announces 5:1 stock split!
The stock gave multibagger returns of 115 per cent in just 1 year whereas BSE Sensex Index is up by 22 per cent.
Canara Bank has approved a plan to split each existing equity share (face value Rs 10) into five shares (face value Rs 2 each). This stock split is subject to approval by the Reserve Bank of India. The bank aims to split its shares to increase its liquidity, making them more readily bought and sold, and to decrease the price per share, attracting and expanding its base of individual investors. The expected completion time, considering the time taken for receiving RBI's approval, is 2 to 3 months from the date the Board Meeting intimation is sent to the Stock Exchanges (i.e., from February 7, 2024).
Today, shares of Canara Bank plunged 1.24 per cent to Rs 572.80 per share from its previous closing of Rs 580 with an intraday high of Rs 584.65 and an intraday low of Rs 570.20. The stock’s 52-week high is Rs 598.75 while its 52-week low is Rs 268.85. A Late ace investor of the Indian stock market, Rakesh Jhunjhunwala’s portfolio owns 3,75,97,600 shares or a 2.07 per cent stake in the company.
According to the Quarterly Results, total income increased by 26.3 per cent to Rs 28,492 crore and net profit increased by 25.1 per cent to Rs 3,827 crore in Q3FY24 compared to Q3FY23. The EPS for Q3FY24 stood at Rs 20.89. In its half-yearly, nine-month and annual results, the company also reported positive numbers.
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Canara Bank was founded in 1906 in Mangalore. Its segments include treasury operations, retail banking operations, wholesale banking operations and other banking operations. It has completed over a century in the industry and occupies a premier position in the comity of Indian banks. In December 2023, FIIs bought 1,85,41,695 shares and increased their stake to 11.21 per cent from 10.91 per cent in September 2023. The company has a market cap of over Rs 1,00,000 crore and has delivered good profit growth of 37 per cent CAGR over the last 5 years.
The stock is providing a good dividend yield of 2.17 per cent. The stock gave multibagger returns of 115 per cent in just 1 year whereas BSE Sensex Index is up by 22 per cent. Investors should keep an eye on this PSU stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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