Rakesh Jhunjhunwala’s portfolio multibagger stock & FIIs increase stake; Board likely to announce stock split – scrip hit 52-week high!

This company has given investors significant returns of over 250 per cent in the past 3 years.

Indian stock markets closed mixed on Wednesday, with the BSE Sensex down by 0.05 per cent at a level of 72,152 and the NSE Nifty 50 Index up 0.01 per cent at a level of 21,930.

In addition to the overall mixed market, a multibagger PSU-Banking stock was trending. This company has given investors significant returns of over 250 per cent in the past 3 years.

The stock name that created the excitement is none other than CANARA BANK.

Today, one of the Top Gainers on BSE, shares of Canara Bank gained 6.23 per cent to Rs 553.70 per share from its previous closing of Rs 521.25 with an intraday high of Rs 560 and an intraday low of Rs 530.55. The stock also made a fresh new 52-week high of Rs 560 per share.

The sudden rise in the stock price was due to the company announcing that a meeting of the Board of Directors of the Bank is scheduled to be held on Monday, February 26, 2024, to seek in-principle approval from the Board of Directors for sub-division/split of the equity shares of the bank subject to prior approval of Reserve Bank of India (RBI) and other Statutory/Regulatory/Government of India approvals, as may be required.

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. As of Friday’s closing, price, the stock was trading at Rs 553.70 per share, up 32.45 points or 6.23 per cent. That means his portfolio gained Rs 122,00,42,120 in just 1 day from this stock (i.e., 3,75,97,600 shares x Rs 32.45 per share).

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.

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 the December 2023, FIIs have 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. Investors should keep an eye on this Large-Cap stock.

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