⚠ 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.
BANKINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | BANKINDIA | Market Cap | 69,419 Cr. | Current Price | 153 ₹ | High / Low | 178 ₹ |
| Stock P/E | 6.84 | Book Value | 186 ₹ | Dividend Yield | 2.66 % | ROCE | 6.15 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 159 ₹ | DMA 200 | 140 ₹ |
| Chg in FII Hold | 1.58 % | Chg in DII Hold | -0.45 % | PAT Qtr | 2,705 Cr. | PAT Prev Qtr | 2,555 Cr. |
| RSI | 39.6 | MACD | -3.43 | Volume | 64,17,513 | Avg Vol 1Wk | 84,99,325 |
| Low price | 98.7 ₹ | High price | 178 ₹ | PEG Ratio | 0.17 | Debt to equity | 11.7 |
| 52w Index | 67.5 % | Qtr Profit Var | 7.47 % | EPS | 22.3 ₹ | Industry PE | 7.57 |
📊 Financial Overview
- Revenue & Profitability: PAT improved from 2,555 Cr. to 2,705 Cr. (+7.47%), showing steady growth.
- Margins & Returns: ROE (12.3%) is decent, while ROCE (6.15%) is modest, reflecting average efficiency.
- Debt: Debt-to-equity ratio at 11.7, high but typical for banks.
- Cash Flow: EPS at 22.3 ₹, consistent with profitability.
💹 Valuation Metrics
- P/E Ratio: 6.84 vs Industry PE of 7.57 → Slightly undervalued.
- P/B Ratio: Current Price ₹153 vs Book Value ₹186 → Trading below book value, attractive.
- PEG Ratio: 0.17 → Very attractive, suggesting undervaluation relative to growth.
- Intrinsic Value: Current price below 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 39.6 (near oversold), MACD negative, price below 50DMA but above 200DMA.
- Suggested entry zone: ₹140–₹150 for accumulation.
- Long-term holding viable given stable profitability and undervaluation.
✅ Positive
- Strong ROE (12.3%).
- Quarterly profit growth (+7.47%).
- PEG ratio (0.17) suggests undervaluation relative to growth.
- FII holding increased (+1.58%).
⚠️ Limitation
- ROCE relatively modest (6.15%).
- High leverage (Debt-to-equity 11.7).
- Stock trading below 50DMA, showing weak momentum.
📉 Company Negative News
- DII holding reduced (-0.45%).
- Weak technical momentum with MACD negative.
📈 Company Positive News
- FII holding increased (+1.58%).
- Quarterly profits improved steadily.
🏭 Industry
- Industry PE at 7.57, slightly higher than Bank of India’s 6.84.
- Banking sector stable with long-term growth potential in India.
🔎 Conclusion
- Bank of India shows consistent profitability and trades at attractive valuations compared to peers.
- High leverage is structural but manageable given government backing and steady earnings.
- Best strategy: Accumulate in the ₹140–₹150 zone.
- Long-term holding viable with stable growth and improving fundamentals.