Rakesh Jhunjhunwala’s portfolio sold 1,12,80,200 shares & FIIs sold 1,15,08,343 shares of this multibagger PSU bank stock; 5:1 stock split upcoming!

The stock gave multibagger returns of 118 per cent in just 1 year whereas BSE Sensex Index is up by 25 per cent.

Today, the stock market ended the day in red with Sensex down 0.08 per cent and Nifty-50 down around 0.10 per cent. Along with the market in the red, one multibagger banking stock also ended the day in the red, down 0.75 per cent to Rs 607.95 per share from its previous closing of Rs 612.55 with an intraday high of Rs 615.95 and an intraday low of Rs 603.95.

The stock name is Canara Bank.

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.

As of March 2024, Late Rakesh Jhunjhunwala’s portfolio (now owned by Rekha Jhunjhunwala) sold 1,12,80,200 shares and decreased his stake to 1.45 per cent and FIIs sold 1,15,08,343 shares and decreased their stake to 10.57 per cent compared to 2.07 per cent and 11.21 per cent, respectively, December 2023.

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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).

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.

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 118 per cent in just 1 year whereas BSE Sensex Index is up by 25 per cent. Investors should keep an eye on this PSU stock.

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