CENTRALBK - Fundamental Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Fundamental List📊 Fundamental Analysis: Central Bank of India (CENTRALBK) Fundamental Rating: 3.7
🧾 Core Financials
Profit Growth
Q-o-Q PAT increased from ₹1,105 Cr to ₹1,225 Cr ➜ +30% growth shows improving profitability.
EPS: ₹4.81 — low in absolute terms but aligned with stock price.
Return Metrics
ROE: 11.4%, ROCE: 5.48% ➜ ROE is decent; ROCE is on the lower side for the financial sector.
Balance Sheet Quality
Debt-to-equity: 11.8 ➜ normal for banks due to lending-heavy business model, not alarming.
Book Value: ₹40.8 ➜ trading slightly below book ➜ possible undervaluation.
📈 Valuation Indicators
Metric Value Interpretation
P/E Ratio 7.92 Fairly valued relative to EPS
P/B Ratio ~0.9 (36.9 ₹ / 40.8 ₹) ➜ Undervalued
PEG Ratio 0.14 Extremely attractive — strong growth vs valuation
Industry PE 7.49 Stock trading slightly above industry average
🔍 Conclusion: Valuation suggests undervaluation based on PEG and P/B metrics.
🏦 Business Model & Health
Central Bank of India is one of India’s oldest public sector banks — with government backing.
Asset-heavy model with focus on retail, MSME lending, and priority sector.
Competitive advantage lies in its vast reach and systemic importance, though it lacks aggressive expansion like private players.
Institutional sentiment
FII down: -0.30%, DII down: -0.81% ➜ lukewarm institutional outlook.
📉 Technical Indicators
RSI: 34.0 ➜ approaching oversold zone — possible near-term bounce.
MACD: -0.46 ➜ bearish crossover persists.
Trading below DMA 50 (₹38.5) and DMA 200 (₹44.4) ➜ weak momentum.
✅ Suggested Entry Zone: ₹33–₹35 🔒 If buying for value, consider gradual accumulation near ₹32–₹34.
📅 Long-Term Holding Perspective
Upside potential if
NPA levels reduce and lending picks up.
Public sector banking reforms gain traction.
Dividend and ROE improve further.
💡 Worth holding long-term for investors who believe in PSU turnaround stories and can stomach volatility. Keep a close watch on quarterly performance and government policy moves.
Want to dig deeper into its peer banks — like Bank of Maharashtra or Indian Overseas Bank? I can line up a full comparison for you.
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