Under Rs 100: This PSU Bank rallied over 50% in the first week of February

Indian PSU companies are rallying and have emerged as the major gainers during this bull market. Many of the undervalued PSU stocks have realised their true value in this bull run, and several of them still appear undervalued considering their capacity, goodwill, business, monopoly, and other factors.

Today, we are going to explore a PSU banking stock that has actively participated in this ongoing bull run. Additionally, in February, this stock generated over a 50% return within just 7 days. Someone who invested Rs 1,00,000 in this stock would have generated a profit of over Rs 50,000 within just a week. Let me disclose the bank’s name: IOB Bank, popularly known as Indian Overseas Bank Limited.

Share Performance:

At the start of the day’s trading session, the stock opened at Rs 68.85 per share, showing an increase compared to the previous day’s closing figure of Rs 67.55 per share on the BSE. Currently, the stock is trading at Rs 76.40, representing an impressive rally of over 13% today, along with its intraday highs and lows of Rs 79.90 and Rs 67.95, respectively. Additionally, the stock has reached a 52-week high of Rs 79.90 today.

During the month of February, the stock generated an impressive return of approximately 57%, and in the year, it gained 195%. Furthermore, it has generated an outstanding multibagger return of over 570% in the past three years.

The company’s current market capitalisation stands at Rs 1,44,414 crore on the BSE while the shares are trading at 59.15 times in the market.

Stock Chart (Daily):

Financial Performance:

In the third quarter of FY24, the company reported a Net Interest Income of Rs 2,397.65 crore, reflecting a growth of 5.5% YoY compared to the same quarter in the previous year when the Net Interest Income was Rs 2,271.66 crore. Furthermore, the bank reported a net profit of Rs 722.58 crore, compared to a net profit of Rs 555.19 crore in the same period last year. However, the company’s net profit has surged by around 30% YoY this quarter.

The company’s Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) are 3.90% and 0.62%, showing YoY improvement compared to the previous year’s same quarter figures of 8.19% and 2.43%, respectively.

In terms of ownership, the Promoter holds 96.38%. The FIIs and DIIs hold 0.03% and 1.29%, respectively, while 2.28% is held by public investors as per the most recent update.

Investors should keep this stock on their radar.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.