⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BANKBARODA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | BANKBARODA | Market Cap | 1,46,427 Cr. | Current Price | 283 ₹ | High / Low | 326 ₹ |
| Stock P/E | 7.53 | Book Value | 294 ₹ | Dividend Yield | 2.95 % | ROCE | 6.24 % |
| ROE | 15.7 % | Face Value | 2.00 ₹ | DMA 50 | 295 ₹ | DMA 200 | 275 ₹ |
| Chg in FII Hold | 1.13 % | Chg in DII Hold | -0.21 % | PAT Qtr | 5,055 Cr. | PAT Prev Qtr | 4,809 Cr. |
| RSI | 39.2 | MACD | -4.64 | Volume | 55,32,435 | Avg Vol 1Wk | 71,26,592 |
| Low price | 209 ₹ | High price | 326 ₹ | PEG Ratio | 0.19 | Debt to equity | 11.0 |
| 52w Index | 63.5 % | Qtr Profit Var | 4.49 % | EPS | 37.6 ₹ | Industry PE | 7.57 |
📊 Financial Overview
- Revenue & Profitability: PAT improved from 4,809 Cr. to 5,055 Cr. (+4.49%), showing steady growth.
- Margins & Returns: ROE (15.7%) is strong, while ROCE (6.24%) is modest, reflecting average efficiency.
- Debt: Debt-to-equity ratio at 11.0, high but typical for banks.
- Cash Flow: EPS at 37.6 ₹, consistent with profitability.
💹 Valuation Metrics
- P/E Ratio: 7.53 vs Industry PE of 7.57 → Fairly valued.
- P/B Ratio: Current Price ₹283 vs Book Value ₹294 → Trading near book value, attractive.
- PEG Ratio: 0.19 → Very attractive, suggesting undervaluation relative to growth.
- Intrinsic Value: Current price close to fair value, offering upside potential.
🏢 Business Model & Competitive Advantage
- Large public sector bank with diversified lending and strong retail presence.
- Government backing provides stability and trust.
- High leverage is structural but profitability remains consistent.
📈 Entry Zone Recommendation
- Technicals: RSI at 39.2 (near oversold), MACD negative, price below 50DMA but above 200DMA.
- Suggested entry zone: ₹260–₹275 for accumulation.
- Long-term holding viable given stable profitability and fair valuation.
✅ Positive
- Strong ROE (15.7%).
- Quarterly profit growth (+4.49%).
- PEG ratio (0.19) suggests undervaluation relative to growth.
- FII holding increased (+1.13%).
⚠️ Limitation
- ROCE relatively modest (6.24%).
- High leverage (Debt-to-equity 11.0).
- Stock trading below 50DMA, showing weak momentum.
📉 Company Negative News
- DII holding reduced (-0.21%).
- Weak technical momentum with MACD negative.
📈 Company Positive News
- FII holding increased (+1.13%).
- Quarterly profits improved steadily.
🏭 Industry
- Industry PE at 7.57, close to Bank of Baroda’s 7.53.
- Banking sector stable with long-term growth potential in India.
🔎 Conclusion
- Bank of Baroda shows strong profitability and fair valuation compared to peers.
- High leverage is structural but manageable given consistent earnings.
- Best strategy: Accumulate in the ₹260–₹275 zone.
- Long-term holding viable with stable growth and improving fundamentals.