Bank of Maharashtra shares: Buy for more upside? Revised BoM targets after Q4 results
Bank of Maharashtra shares: The stock is already up 55 per cent in the past one year. On Tuesday, it gained 6.24 per cent to hit a high of Rs 80.40 apiece.
- Apr 21, 2026,
- Updated Apr 21, 2026 10:40 AM IST
Systematix Institutional Equities has revised upward its target price on Bank of Maharashtra (BoM), following the state-run PSU's March quarter results, citing strong advances growth with better cost controls and improved return on asset (RoA). HDFC Securities, another brokerage, also maintained 'Buy' on the stock, even as the stock delivered 55 per cent in the past one year.
On Tuesday, it gained 6.24 per cent to hit a high of Rs 80.40 apiece.
Based on its revised estimates, the domestic brokerage suggested a new target price of Rs 88 for BoM from Rs 80 earlier, while keeping its 'Buy' rating in tact on Bank of Maharashtra. At this target, the broking fir values BoM at 1.5 times its estimated FY28 adjusted book value of Rs 58 per share.
"We raise our FY27E-FY28E estimates by 4 per cent, factoring in higher business growth and stronger asset quality through utilisation of provisioning buffer, even as we envisage stress rising in the agri and MSME portfolios. We reiterate Buy, with a revised target of Rs 90," HDFC Securities.
On Q4 results, Systematix said Bank of Maharashtra's profit came in 12.3 per cent above its estimate of Rs 1,790 crore. Profit grew 13.2 per cent sequentially, driven by healthy net interest income (NII) growth and lower provisions.
"The bank reported a healthy sequential growth in net advances of 6.9 per cent in 4Q and 22 per cent YoY while the deposits grew by 9 per cent and 14.1 per cent correspondingly. The net interest margin (NIM) improved by 5 bps sequentially (down -9 bps YoY). The yield on advances (YOA) declined by 20 bps QoQ to 8.72 per cent. This was offset by a decline of 15 bps QoQ in cost of funds (CoF) combined with a 13 bps increase in yield on investments," Systematix said.
The management has indicated that deposit repricing benefits are largely captured and have guided for a NIM of 3.75 per cent going forward.
BoM's gross slippages for the quarter stood at Rs 8,400 crore while the annualised gross slippage ratio came in at 1.2 per cent, up 5 basis points QoQ and 6 bps YoY.
"The recoveries and upgrades stood at Rs 340 crore. This resulted in a net slippage addition of Rs 500 crore. Credit costs remained below 1 per cent. The slippages are expected to remain below 1 per cent levels while the credit costs are expected to stabilise at 1 per cent going forward. Further, the advances are expected to grow by 18 per cent and deposits to grow in the range of 14-15 per cent while maintaining CASA at 50 per cent levels," it said.
Systematix Institutional Equities has revised upward its target price on Bank of Maharashtra (BoM), following the state-run PSU's March quarter results, citing strong advances growth with better cost controls and improved return on asset (RoA). HDFC Securities, another brokerage, also maintained 'Buy' on the stock, even as the stock delivered 55 per cent in the past one year.
On Tuesday, it gained 6.24 per cent to hit a high of Rs 80.40 apiece.
Based on its revised estimates, the domestic brokerage suggested a new target price of Rs 88 for BoM from Rs 80 earlier, while keeping its 'Buy' rating in tact on Bank of Maharashtra. At this target, the broking fir values BoM at 1.5 times its estimated FY28 adjusted book value of Rs 58 per share.
"We raise our FY27E-FY28E estimates by 4 per cent, factoring in higher business growth and stronger asset quality through utilisation of provisioning buffer, even as we envisage stress rising in the agri and MSME portfolios. We reiterate Buy, with a revised target of Rs 90," HDFC Securities.
On Q4 results, Systematix said Bank of Maharashtra's profit came in 12.3 per cent above its estimate of Rs 1,790 crore. Profit grew 13.2 per cent sequentially, driven by healthy net interest income (NII) growth and lower provisions.
"The bank reported a healthy sequential growth in net advances of 6.9 per cent in 4Q and 22 per cent YoY while the deposits grew by 9 per cent and 14.1 per cent correspondingly. The net interest margin (NIM) improved by 5 bps sequentially (down -9 bps YoY). The yield on advances (YOA) declined by 20 bps QoQ to 8.72 per cent. This was offset by a decline of 15 bps QoQ in cost of funds (CoF) combined with a 13 bps increase in yield on investments," Systematix said.
The management has indicated that deposit repricing benefits are largely captured and have guided for a NIM of 3.75 per cent going forward.
BoM's gross slippages for the quarter stood at Rs 8,400 crore while the annualised gross slippage ratio came in at 1.2 per cent, up 5 basis points QoQ and 6 bps YoY.
"The recoveries and upgrades stood at Rs 340 crore. This resulted in a net slippage addition of Rs 500 crore. Credit costs remained below 1 per cent. The slippages are expected to remain below 1 per cent levels while the credit costs are expected to stabilise at 1 per cent going forward. Further, the advances are expected to grow by 18 per cent and deposits to grow in the range of 14-15 per cent while maintaining CASA at 50 per cent levels," it said.