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Canara Bank shares, a key player in the PSU bank stock market, experienced a surge in buying activity today, coinciding with the stock trading ex-split. This significant event was pre-determined by the board of directors, who set the record date for the stock split in a 1:5 ratio as 15th May 2024. Following the split, the adjusted close price of Canara Bank shares on Tuesday was ₹113.30 apiece on NSE. Today, the post-adjustment opening price was ₹116.25 per share on NSE, reaching an intraday high of ₹118.90 per share, marking a notable 5 percent increase from Tuesday's adjusted close price of ₹113.30 per share. Insights from stock market experts suggest that the stock split is likely to boost the trade volume of Canara Bank shares, which are still available at attractive valuations. Post-split, the shares are available at a promising PE multiple of around 1.47, indicating the PSU bank's successful management of its cost of funding. These experts anticipate a further surge in Canara Bank shares in the post-stock split period, offering a potential opportunity for investors. Sharing his insights on Canara Bank's share price outlook, Saurabh Jain, Vice President—Research at SMC Global Securities, stated, "With the recent peak in interest rates, the cost of funding has emerged as a crucial factor in selecting a banking stock. Canara Bank's CASA ratio, though lower than its peers, indicates a promising low cost of funding and high income in the upcoming quarters. This advantage is expected to position Canara Bank shares to outperform its peers in the near future." Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, shared his technical analysis of Union Bank and Canara Bank shares. He explained, "Canara Bank is currently facing a resistance at the ₹119 to ₹120 apiece level. However, once this resistance is breached, we can expect the state-owned stock to reach new heights, surpassing its existing record high of ₹126.58." The Canara Bank board recently declared a stock subdivision from the existing face value of ₹10 per share to ₹2 per equity share. The board further set 15th May 2024 as the record date for the stock split. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!
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Published: 15 May 2024, 01:25 PM IST
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Canara Bank stockk split