Bank of Baroda shares jump 5% after Q2 net profit rises 36%. What Nomura and other brokerages saying?
Bank of Baroda reported a 36% year-on-year rise in Q2 FY27 net profit, aided by gains from the NSE stake sale. Brokerages maintained mixed ratings, with target prices ranging from Rs 260 to Rs 285 per share.
Bank of Baroda's shares surged nearly 5% on Monday following the lender's announcement of a 36% increase in net profit for Q2 of the 2027 financial year. The rise in net profit to Rs 6,532 crore was driven by significant one-time gains from the sale of a stake in the National Stock Exchange during its initial public offering. The bank's net interest income also grew by 9% year-over-year to Rs 13,026 crore.
The profit surge was supported by non-interest income almost doubling to Rs 6,881 crore, compared to Rs 3,515 crore in the same quarter last year. However, the net interest margin dropped to 2.74% from 2.96% a year earlier. Nomura, a brokerage firm, maintained its 'Neutral' rating on Bank of Baroda shares but lowered its target price to Rs 270 from Rs 280, indicating a 13% upside potential.
The brokerage attributed this to strong Q2 numbers, with profit surpassing estimates by 12% and non-interest income outpacing expectations by 4%.
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