Stock market analyst Hitendra Vasudeo of stockmechanics.com has maintained 'Sell' rating on Canara Bank stock to achieve a target that lies between Rs 237.40-Rs 216.70.

According to Mr. Vasudeo, investors can sell the stock around Rs 250.60-Rs 258.10 with a stop loss of Rs 264.

Today (June 12), the stock opened at Rs 246.50 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 50.55 and 4.92 respectively. The share price has seen a 52-week high of Rs 297.20 and a low of Rs 135 on BSE.

Mr. Vasudeo is of the view that investors should sell the stock today to avoid loss.

After selling the stock, the interested investors can enter the stock again at a low price, for medium or long term prospective.

Canara Bank, in May 2009, said that it has signed up a Memorandum of Understanding (MoU) with Fitch Ratings India for bank loan ratings.

Under the deal, Fitch will allocate ratings to the loans of the bank as well as other exposures extended to both its subsisting as well as prospective borrowers.

Under the standardized approach of the central bank (RBI) new capital adequacy framework for Basel II, bank loan ratings from Fitch would permit the banking institution to allot the appropriate risk weights valid to its borrowers.

For the three month period ended March 31, 2009, the bank posted a phenomenal growth of 54.90% in its standalone net profit. During the quarter, the bank posted net profit of Rs 7,188.10 million as against Rs 4,640.60 million in the same quarter previous year.

During the quarter, the bank earned an interest income of Rs 46,538.80 million, whereas its total income surged 22.17% to Rs 55,003.50 million.

The bank reported earnings of Rs 17.53 per share, an increase of 54.86% over the previous year period.

For the year ended March 31, 2009, the directors announced a dividend of 80% that is Rs 8 per share of the face value of Rs 10.