BANKINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Bank of India (BANKINDIA), a prominent public sector bank with deep roots and a wide national footprint. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹21.5 — solid earnings base for a PSU bank

PAT Qtr: ₹2,252 Cr vs ₹2,626 Cr — slight dip, but YoY growth of 32.3% is impressive

ROE: 12.3%, ROCE: 6.15% — decent returns, typical for public sector banks

Debt-to-equity: 12.1 — high, but expected in banking

Balance Sheet & Dividend

Book Value: ₹174 — price-to-book ratio ~0.68, deeply undervalued

Dividend Yield: 3.40% — attractive for income-focused investors

Institutional sentiment: FII slightly down, DII marginally up — neutral stance

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 5.55 Undervalued vs industry PE of 7.91

P/B Ratio ~0.68 Trading well below book value

PEG Ratio 0.14 Deep value — growth far outweighs price

Intrinsic Value ~₹125–₹130 Slightly undervalued at current price

Valuation is highly attractive, especially for long-term investors seeking value in PSU banking.

🏦 Business Model & Competitive Edge

Industry: Banking — essential, regulated, and cyclical

Moat: Strong government backing, extensive rural and urban reach

Catalysts

Digital transformation and retail credit expansion

Improved asset quality and deposit mobilization

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Strategic focus on high-margin corporate lending and retail schemes

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Bank of India is quietly strengthening its fundamentals while trading at a discount to peers.

📉 Technical & Entry Zone

Current Price: ₹119

DMA 50/200: Trading above both — bullish trend

MACD: +1.32 — positive momentum

RSI: 62.6 — neutral to slightly bullish

📌 Suggested Entry Zone: ₹112–₹118

This range offers a better margin of safety and aligns with technical support levels.

🕰️ Long-Term Holding Guidance

Hold if already invested — valuation and fundamentals support upside

Buy on dips near ₹115 for long-term compounding

2026 Target Price: ₹139–₹145 based on projected growth and sector tailwinds

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⭐ Fundamental Rating

4.3

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