130% return in one year: Brokerage recommends buying this bank stock trading at Rs 131, know target price
Stock to buy: As earnings season is going on, Jammu & Kashmir Bank (J&K Bank) has also posted its fourth quarter results for the fiscal 2024 on May 4. The bank reported a record profit of Rs 1,767 crore for 2023-24. However, the private lender’s cost-to-income ratio including the humongous costs of human resources remains a challenge for the bank, which they promise to address in a few years.
Meanwhile, brokerage SBI Securities suggests buying J&K Bank stock after its Q4 results. The brokerage has given a ‘buy’ rating on the stock.
J&K Bank share: Price target
Brokerage recommended buying the stock with a target of Rs 172. The target implies an upside of more than 30 per cent from Tuesday’s closing price.
Why brokerage SBI Securities is bullish on the stock
The brokerage firm says despite industry-wide pressure on the liability side, the bank’s CASA ratio as of March 24 is 50.51 per cent, one of the best in the industry. Development is being seen in Jammu and Kashmir due to improvement in law and order situation. The emphasis on building infrastructure is helping key sectors of Jammu and Kashmir’s economy such as agriculture, tourism, and arts and crafts to grow rapidly. Cost benefits are expected from the further retirement of high-cost employees.
J&K Bank share price history
The bank’s shares last traded at Rs 129.4 each, down 4.11 per cent on Tuesday, May 7 on BSE. The private sector bank’s shares have provided almost 20 per cent returns in six months, 128 per cent in one year, and around 4 per cent on a year-to-date (YTD) basis. Today, the bank’s shares are trading at Rs 131.45 each, up 1.58 per cent on BSE at 11.10 AM.
J&K Bank dividend
The bank has announced to pay Rs 2.15 per equity share dividend of a face value of Rs 1 each.
Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult their investment advisers before making any financial decision.
