Punjab National Bank has been approved to sell its entire 15.22 percent stake in UTI AMC. PNB has received approval from DIPAM i.e. Department of Disinvestment of Govt. As per the current valuation, the bank has a stake of Rs 1,300 crore in UTI, an asset management company.
Following this news, brokerage firm Sharekhan has upgraded the bank’s rating and advised it to buy. Earlier he advised to hold. The brokerage said in its latest report that due to improvement in return on assets, equity investments are expected to generate good returns in the coming period.
PNB up more than 7 percent
Today, bumper boom is seen in this share. Shares of Punjab National Bank rose over 7 percent to trade at Rs 54.50, a fresh 52-week high, with the company’s market cap close to Rs 60,000 crore. These shares have gained 19 percent in one week, 25 percent in one month, 55 percent in three months and 46 percent so far this year. Today, the shares of UTI Asset Management Company are also showing good growth. Shares of the company saw a jump of more than 5 percent.
Know the target price after investment
The brokerage has upgraded the investment in the shares from hold to buy. The target price has been fixed at Rs. The brokerage said the return on assets was 0.3 percent in FY2022, which is expected to reach 0.4 percent this fiscal and 0.7 percent in the next fiscal. Return on equity was 3.7 percent, which is projected to reach 6.1 percent this fiscal and 9.7 percent next fiscal.