Stock market analyst Hitendra Vasudeo has suggested investors to 'sell' Bank of Baroda (BoB) stock as there are full chances of a downward trend in this stock in the coming days.

According to Mr. Vasudeo, investors can sell the stock between Rs 425.40 - 436.20 with a strict stop loss of Rs 442 to achieve a target that lies between Rs 409.20 – 382.20.

Today (June 04), the stock opened at Rs 415 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 59.04 and 7.01 respectively. The share price has seen a 52-week high of Rs 1768 and a low of Rs 894 on BSE.
 
Mr. Vasudeo also suggested that it’s profitable to sell the stock at the said level as the counter is under huge pressure.

The report added if the stock fell below Rs 377, it may see more weakness. So the investors must sell BoB stock.

After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

Kotak Mahindra Asset Management Company, on June 03, signed up a distribution pact with Bank of Baroda.

Under the contract, the banking institution will provide the entire bouquet of Kotak Mutual Fund products from its divisions.

With this affiliation, the clients will gain easy access to a range of schemes of Kotak Mahindra AMC at the divisions where they carry out their banking operations.

BoB registered a phenomenal growth in standalone net profit for the three month period ended March 2009.

The bank’s profit during the quarter increased 2.72 times to Rs 7,526.90 million as against Rs 2,764.40 million during the same quarter previous year.

Interest earned during the quarter surged 24.25% to Rs 41,387.80 million, whereas total income remained up by 28.48% to Rs 49,924.10 million.

During the quarter, the company reported EPS of Rs 20.66.

On yearly basis, BoB has registered an increase of 55.14% in net profit to Rs 22,272 million for the year ended March 31, 2009 as compared to Rs 14,355.20 million for the year ended Mar. 31, 2008.

During the year, the banking institution invested Rs 1,132.6 million in Baroda (New Zealand), a subsidiary of the bank.

The bank’s board also suggested 90% dividend on equity share capital (Rs 9 a share) for the year 2008-09, subject to approval by members.