Stock to buy: Canara Bank, Prabhudas Lilladher sets target price at ₹160

Prabhudas Lilladher has retained its Buy rating on Canara Bank and raised its target price to ₹160 from ₹150, according to a research report dated October 15, 2026. The brokerage cited better than expected quarterly performance and an improved outlook for core profit.

Canara Bank reported stronger core pre provision operating profit (PPoP), supported by higher net interest income, better net interest margins and fee income.

Canara Bank share price and target

Particular	Details
Brokerage	Prabhudas Lilladher
Rating	Buy
Target price	₹160
Previous target	₹150
Current share price	₹117.20
Report date	October 15, 2026

The reported share price of ₹117.20 implies a potential upside of about 36.5% to the brokerage's ₹160 target. This is a calculation based on the reported price and target, not a guaranteed return.

Why is Prabhudas Lilladher bullish on Canara Bank?

Canara Bank delivered a strong quarter, with core PPoP rising 13.3%. The brokerage attributed the performance to better net interest income, improved margins, fee income and operating expenses.

Loan growth was 6.5% quarter on quarter. Excluding FCNR(B) related loans, domestic credit growth was around 5%, mainly supported by corporate and agricultural lending.

Canara Bank earnings outlook

Prabhudas Lilladher expects the bank's net interest margin to remain around current levels. It cited higher yields on corporate and agricultural loans, potential festive season retail credit demand, a loan to deposit ratio of around 80% and the repricing of external benchmark linked loans.

The brokerage raised its FY27 and FY28 net interest margin estimates by 7 basis points and 6 basis points, respectively. It also increased its core profit after tax estimates by an average of around 6%.

Earnings metric	Brokerage update
Core PPoP growth	13.3%
Loan growth	6.5% quarter on quarter
Domestic credit growth excluding FCNR(B) loans	Around 5% quarter on quarter
FY27 NIM estimate	Raised by 7 basis points
FY28 NIM estimate	Raised by 6 basis points
Core PAT estimates	Raised by around 6% on average

What should investors watch?

Prabhudas Lilladher has retained its Buy rating while raising the target price to ₹160, based on its updated estimates through September 2028. Future performance will depend on net interest margins, loan growth and the bank's ability to maintain earnings growth. The brokerage target is an estimate and does not guarantee future share price performance.