Canara Bank shares, a significant player in the PSU bank stock market, witnessed increased buying activity today, coinciding with the stock trading ex-split. This event was pre-planned by the board of directors, who set the record date for the stock split at a 1:5 ratio on May 15, 2024. Following the split, the adjusted closing price of Canara Bank shares on Tuesday stood at ₹113.30 per share on NSE. Today, the opening price post-adjustment was ₹116.25 per share on NSE, reaching an intraday high of ₹118.90 per share. This represented a noticeable 5 percent increase from Tuesday’s adjusted closing price of ₹113.30 per share.
Analysis from stock market experts indicates that the stock split is expected to increase the trading volume of Canara Bank shares, which remain attractively priced. Following the split, the shares maintain an appealing PE multiple of approximately 1.47, showcasing the effective management of the bank’s cost of funding. These experts foresee a continued rise in Canara Bank shares post-split, presenting a potential opportunity for investors.
Canara Bank share price target
Saurabh Jain, Vice President—Research at SMC Global Securities, highlighted the Bank’s favorable outlook, noting that amidst recent increases in interest rates, the bank’s low cost of funding and potential for high income in the upcoming quarters are promising. He anticipates that this advantage will enable the Bank shares to outperform its peers in the near term.
Meanwhile, Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, provided technical insights on Union Bank and Canara Bank shares. He observed that Canara Bank is currently encountering resistance in the ₹119 to ₹120 per share range. However, once this resistance is surpassed, he expects the state-owned bank’s shares to reach new highs, surpassing its previous record of ₹126.58 per share.
The Canara Bank board recently announced a stock subdivision, reducing the existing face value of shares from ₹10 per share to ₹2 per equity share. The board also designated May 15, 2024, as the record date for the stock split.
