Bank of Baroda Limited

“Bank of Baroda has credibly completed an NPA recovery cycle and returned to consistent profitability, but at a 12.8% ROE barely covering its cost of equity, 0.87x P/B close to intrinsic fair value, and structural competitive disadvantages versus private banks that are unlikely to reverse under government ownership, the stock offers mediocre 10-year compounding of roughly 2.5-3x total return — not enough to merit fresh capital allocation when better compounders exist in Indian banking.”