Canara Bank shares slide over 6% after Q2 earnings. Buy, sell or hold the state lender?
Canara Bank shares fell sharply on Thursday despite reporting an 8% year-on-year rise in Q2 FY27 standalone net profit to Rs 5,175 crore. Brokerages remain divided, with Morgan Stanley retaining an Underweight rating, while Motilal Oswal and JM Financial recommend buying the stock.
Canara Bank's shares dropped over 6% on Thursday, reaching a low of Rs 117 on the BSE. Despite reporting a stronger-than-expected profit of Rs 5,175 crore in the second quarter of FY27, up 8% from the previous year, the stock experienced a decline. Net interest income increased by more than 20% year-on-year to Rs 11,005 crore, while other financial metrics showed growth.
However, Morgan Stanley downgraded the bank to Underweight, citing limited scope for valuation re-rating, while Motilal Oswal and JM Financial maintained a Buy rating on the shares. The brokerage upgrades and downgrades reflect varying opinions on the bank's growth potential and financial health.
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