Exploring the Canara Bank share price targets for 2024, 2025 to 2030. To know how the stock will perform in the upcoming years, read the complete technical and fundamental analysis report.
Before going on it’s Analysis, We first understand that what he is and what he do?
What is Canara Bank Ltd.?
Canara Bank Limited, an Indian-based bank, operates through segments like Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations.
Its offerings span personal banking with services like depository services, mutual funds, retail loan products, and card services, alongside corporate banking services including accounts, supply chain finance management, and syndication services.
The bank also extends services to unbanked rural individuals with basic savings deposit accounts and credit facilities like PMJDY Overdraft Facilities and Kisan Credit Card Scheme. Established in 1906, Canara Bank is represented by the NSE symbol CANBK, with Shri. K. Raju serving as the Managing Director.
Company Profile
| Company Type | Public |
| Traded As | BSE: 532483, NSE: CANBK |
| Industry | Banking, Financial Services |
| Founded | 1906 (118 years ago) |
| Headquarters | Bengaluru, India |
| Locations | 9,518 Branches |
| Key People | Non-Executive Chairman: Vijay Srirangan MD & CEO: K Satyanarayana Raju |
| Products | Retail Banking Corporate Banking Investment Banking Mortgage Loans Private Banking Wealth Management’ Asset Management Investment Management Risk Management Mutual Funds Exchange-Traded Funds Index Funds Credit Cards Insurance |
| Financials (2023) | Revenue: ‘₹111,209.76 crore (US$14 billion) |
| Owner | Government of India (62.93%) |
| Employees | 86,919 (March 2022) |
| Capital Ratio | 13.36% |
| Website | canarabank.com |
Canara Bank Ltd. Fundamental Analysis
| Data | Value |
|---|---|
| Market Cap | ₹ 1,07,305.80 Cr. |
| CASA % | 31.09 |
| Number of Shares | 181.41 Cr. |
| P/E | 7.68 |
| P/B | 1.4 |
| Face Value | ₹ 10 |
| Dividend Yield | 2.03 % |
| Book Value (TTM) | ₹ 423.92 |
| Net Interest Income | ₹ 31,435.30 Cr. |
| Cost to Income % | 44.79 |
| Promoter Holding | 62.93 % |
| EPS (TTM) | ₹ 77.02 |
| CAR % | 16.68 |
| ROE | 17.14 % |
| ROCE | 15.05 % |
| Profit Growth | 86.74 % |
Canara Bank Ltd. Profit & Loss – Last 5 Years Report
| DATA | MAR 2019 (CR.) | MAR 2020 (CR.) | MAR 2021 (CR.) | MAR 2022 (CR.) | MAR 2023 (CR.) |
|---|---|---|---|---|---|
| Interest Earned | ₹46,810.34 | ₹48,934.99 | ₹69,280.46 | ₹69,410.24 | ₹84,424.78 |
| Other Income | ₹6,574.96 | ₹7,813.15 | ₹14,924.31 | ₹16,496.90 | ₹18,762.20 |
| Interest Expended | ₹32,332.22 | ₹35,811.08 | ₹45,177.62 | ₹43,026.26 | ₹52,989.49 |
| Operating Expenses | ₹10,462.21 | ₹11,577.23 | ₹19,338.18 | ₹19,791.91 | ₹22,481.48 |
| Total Provisions | ₹12,918.28 | ₹11,115.39 | ₹15,981.74 | ₹14,127.39 | ₹13,543.01 |
| Profit Before Tax | -₹2,327.40 | -₹1,755.57 | ₹3,707.23 | ₹8,961.58 | ₹14,173 |
| Taxes | -₹2,674.42 | ₹480.15 | ₹1,149.65 | ₹3,283.17 | ₹3,569.24 |
| Net Profit | ₹347.02 | -₹2,235.72 | ₹2,557.58 | ₹5,678.41 | ₹10,603.76 |
| Adjusted EPS (Rs.) | ₹4.61 | -₹21.70 | ₹15.53 | ₹31.30 | ₹58.45 |
| Year | Canara Bank Share Price Target 2024 |
| 2024 | ₹580 to ₹750 |
- CANBK is expected to experience a bullish trend in 2024, with the initial target set at ₹580.72 and potential fluctuations mid-year, reaching a peak of ₹750.99.
- Key Factors: Strong growth potential driven by favorable market conditions, consolidation in early months, and robust performance anticipated throughout the year.
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| Year | Canara Bank Share Price Target 2025 |
| 2025 | ₹730 to ₹950 |
- A bullish trend continues into 2025, with the initial target set at ₹730.51 and potential mid-year fluctuations, aiming for a steady climb to ₹950.94 year-end.
- Key Factors: Positive macro and microeconomic factors along with industry trends support the upward trajectory of CANBK’s share price.
Also Read: Infosys Share Price Target 2024, 2025, 2030, 2040, 2050
| Year | Canara Bank Share Price Target 2026 |
| 2026 | ₹920 to ₹1120 |
- Moderate fluctuations anticipated in 2026, with an initial target of ₹704.68 and mid-year recovery projected towards ₹1120.92.
- Key Factors: Technical data suggests a minimum target of ₹704.68 with potential upward movement by mid-year.
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| Year | Canara Bank Share Price Target 2027 |
| 2027 | ₹1110 to ₹1340 |
- Mixed trends expected in 2027, with rapid movements both upward and downward, yet maintaining an overall upward trajectory towards ₹1340.66.
- Key Factors: Utilizing Fibonacci projections to estimate price targets, anticipating volatile yet bullish movements throughout the year.
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| Year | Canara Bank Share Price Target 2028 |
| 2028 | ₹1320 to ₹1540 |
- The initial target for Canara Bank Ltd in 2028 is forecasted at ₹1320.30, with potential mid-year fluctuations aiming towards ₹1540.42.
- Market conditions are expected to remain favorable, supporting strong and steady growth throughout the year.
- Investors should closely monitor macroeconomic factors and industry trends to capitalize on potential opportunities.
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| Year | Canara Bank Share Price Target 2029 |
| 2029 | ₹1500 to ₹1860 |
- Continuing the upward trajectory, the initial target for Canara Bank Ltd in 2029 is set at ₹1500.03, with potential mid-year fluctuations towards ₹1860.20.
- Anticipated growth is supported by positive market sentiments and sustained performance in the banking sector.
- Long-term investors may benefit from maintaining a diversified portfolio and staying informed about market developments.
Also Read: Mahan Industries Share Price Target 2024, 2025 to 2030
| Year | Canara Bank Share Price Target 2030 |
| 2030 | ₹1850 to ₹2140 |
- Looking ahead to 2030, Canara Bank Ltd is forecasted to reach an initial target of ₹1850.62, with potential mid-year fluctuations towards ₹2140.87.
- The long-term outlook remains optimistic, driven by continued economic growth and favorable market conditions.
- Investors should adopt a disciplined approach, focusing on fundamental analysis and risk management strategies to navigate market uncertainties.
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The Indian banking sector is experiencing significant growth, driven by factors such as infrastructure spending, favorable government policies, rising disposable income, increased consumerism, and improved credit accessibility. While the overall industry is flourishing, the question arises: Is it the opportune moment to invest in banking stocks? A detailed analysis of Canara Bank’s performance can provide insights into its attractiveness as an investment.
For banking entities, the primary revenue source is interest earned on loans to individuals and corporations. Canara Bank has recorded a robust revenue of Rs 84,424.78 Cr. in the latest financial year, reflecting an impressive growth of 19.94% over the past three years.
In terms of advances, Canara Bank has reported a year-on-year (YOY) rise of 18.06%. Looking at the three-year advance growth, it stands at 24.33%.
Currently, Canara Bank maintains a CASA ratio of 31.09%, with an overall cost of liability at 4.28%. The total deposits from these accounts reached Rs 11,79,218.61 Cr.
Canara Bank exhibits an average Return on Assets (ROA) track record, with the ROA standing at 0.82%.
Efficiency in managing its overall asset portfolio is a concern for the lender. The Gross Non-Performing Assets (NPA) and Net NPA of Canara Bank stood at 5.35% and 1.73%, respectively, in the latest financial year.
An essential measure of a bank’s financial health is the provisioning coverage ratio. The year-on-year change in provision and contingencies is negative at -4.14%, indicating a decrease from the previous year.
Non-interest income, or other incomes, plays a crucial role for banks as it provides a regular source of income with no additional risk. Canara Bank’s other income has surged and currently stands at Rs 18,762.20 Cr.
Canara Bank boasts a healthy Capital Adequacy Ratio of 16.68%.
A key metric offering insights into a bank’s valuation is the Price-to-Book (P/B) ratio. Currently, Canara Bank is trading at a P/B of 1.38, with the historical average P/B at 0.60.
Share Price: The current share price of Canara Bank is Rs 589.75. Utilizing valuation calculators can help assess whether Canara Bank’s share price is undervalued or overvalued.
Strengths
- Consistent track record of Return on Equity (ROE) with 3 years ROE at 11.25%.
- Solid Capital Adequacy Ratio of 16.68%.
- Impressive Profit growth of 88.92% over the past 3 years.
- Robust Advances growth of 24.33% in the last 3 years.
Weakness
- Historically low Return on Assets (ROA) with an average ROA of 0.52% over 3 years.
- Decline in CASA Growth by -2.86% YoY, indicating a slower growth trajectory.
- Elevated Non-Performing Assets (NPA) levels with an average NPA of 2.73% over the last 3 years.
FAQs
As per analysis, Canara bank share price estimated to reach at the end of 2026 or beginning of 2027.
