IDBI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | IDBI | Market Cap | 81,589 Cr. | Current Price | 75.9 ₹ | High / Low | 118 ₹ |
| Stock P/E | 8.58 | Book Value | 62.9 ₹ | Dividend Yield | 2.77 % | ROCE | 6.58 % |
| ROE | 14.9 % | Face Value | 10.0 ₹ | DMA 50 | 82.8 ₹ | DMA 200 | 91.4 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | -0.04 % | PAT Qtr | 1,943 Cr. | PAT Prev Qtr | 1,935 Cr. |
| RSI | 46.4 | MACD | -1.69 | Volume | 1,01,29,638 | Avg Vol 1Wk | 1,22,23,479 |
| Low price | 61.0 ₹ | High price | 118 ₹ | PEG Ratio | 0.23 | Debt to equity | 5.55 |
| 52w Index | 25.9 % | Qtr Profit Var | -5.27 % | EPS | 8.85 ₹ | Industry PE | 15.0 |
Core Financials:
IDBI’s fundamentals remain moderate. ROE is decent at 14.9%, but ROCE is weak at 6.58%. EPS is low at ₹8.85, and quarterly profit variation shows contraction (-5.27%). Debt-to-equity is high at 5.55, reflecting leverage risk.
Valuation:
P/E of 8.58 is attractive compared to industry P/E of 15.0. PEG ratio of 0.23 highlights undervaluation relative to growth. Price-to-book is ~1.2, reasonable for banking. Dividend yield of 2.77% adds income support.
Business Model & Health:
IDBI operates as a government-backed mid-tier bank. Competitive advantage lies in restructuring progress and retail expansion. However, profitability metrics remain weaker than peers, limiting growth potential.
Entry Zone:
Ideal entry zone: ₹65–₹72. Current price ₹75.9 is slightly above fair entry. Long-term holding is viable only if debt levels reduce and ROCE improves.
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Positive
- Attractive P/E vs industry average
- Strong PEG ratio (0.23) indicates undervaluation
- Dividend yield of 2.77% supports investors
- Government backing provides stability
Limitation
- High debt-to-equity (5.55)
- Weak ROCE (6.58%)
- EPS remains low at ₹8.85
- Technical weakness: RSI 46.4, negative MACD (-1.69)
Company Negative News
- Profit contraction (-5.27% quarterly variation)
- High leverage continues to weigh on sentiment
Company Positive News
- Marginal improvement in quarterly PAT (₹1,943 Cr vs ₹1,935 Cr)
- Slight increase in FII holdings (+0.04%)
Industry
Banking sector trades at industry P/E of 15.0, supported by credit growth but facing margin pressures. Peer banks show stronger ROCE and profitability, highlighting IDBI’s relative weakness.
Conclusion
IDBI offers value-driven entry with moderate fundamentals. Rating: 3.6. Entry near ₹65–₹72 is preferable, with a 3–5 year horizon contingent on debt reduction and ROCE improvement. Exit strategy around ₹110–₹118 if fundamentals stagnate.
Would you like me to extend this into a side-by-side peer benchmarking HTML report (e.g., comparing IDBI with Indian Bank, SBI, and PNB) so you can see relative strengths and weaknesses in one reusable template?