⚠ 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.
IDBI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | IDBI | Market Cap | 80,644 Cr. | Current Price | 75.0 ₹ | High / Low | 118 ₹ |
| Stock P/E | 8.38 | Book Value | 64.0 ₹ | Dividend Yield | 2.80 % | ROCE | 6.76 % |
| ROE | 13.6 % | Face Value | 10.0 ₹ | DMA 50 | 102 ₹ | DMA 200 | 97.4 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | 0.01 % | PAT Qtr | 1,935 Cr. | PAT Prev Qtr | 3,627 Cr. |
| RSI | 21.6 | MACD | -7.12 | Volume | 4,03,16,893 | Avg Vol 1Wk | 5,20,14,313 |
| Low price | 72.0 ₹ | High price | 118 ₹ | PEG Ratio | 0.18 | Debt to equity | 4.87 |
| 52w Index | 6.35 % | Qtr Profit Var | 1.42 % | EPS | 8.95 ₹ | Industry PE | 14.8 |
📊 Financial Overview
- Revenue & Profitability: PAT dropped from ₹3,627 Cr. to ₹1,935 Cr. (QoQ), showing earnings pressure.
- Margins: ROE at 13.6% is healthy, but ROCE at 6.76% reflects weak capital efficiency.
- Debt: Debt-to-equity ratio of 4.87 is very high, raising financial risk concerns.
- Cash Flow: EPS of ₹8.95 indicates earnings stability, but declining profits are a red flag.
💹 Valuation Metrics
- P/E Ratio: 8.38 vs Industry PE of 14.8 → undervalued relative to peers.
- P/B Ratio: Price ₹75 vs Book Value ₹64 → trading slightly above book, still reasonable.
- PEG Ratio: 0.18 → strong value relative to growth potential.
- Intrinsic Value: Appears undervalued, but debt burden limits upside.
🏢 Business Model & Competitive Advantage
- IDBI Bank operates in retail and corporate banking with government backing.
- Legacy presence and institutional support provide stability, but high leverage reduces competitiveness.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹72–80 range looks attractive given undervaluation and oversold RSI (21.6).
- Long-Term Holding: Suitable for investors with high risk tolerance. Monitor debt restructuring and profitability trends.
✅ Positive
- Undervalued compared to industry peers.
- Strong ROE of 13.6%.
- Dividend yield of 2.8% provides steady income.
⚠️ Limitation
- High debt-to-equity ratio (4.87).
- Declining quarterly profits.
- Weak ROCE indicates poor capital efficiency.
📉 Company Negative News
- Quarterly PAT fell sharply from ₹3,627 Cr. to ₹1,935 Cr.
- Stock trading below DMA 50 & DMA 200, signaling bearish momentum.
📈 Company Positive News
- FII and DII holdings increased slightly, showing institutional confidence.
- PEG ratio highlights strong growth potential relative to valuation.
🏦 Industry
- Industry PE at 14.8 suggests sector is valued higher than IDBI.
- Banking sector growth supported by credit expansion and government reforms.
🔎 Conclusion
- IDBI Bank is undervalued with decent ROE but faces challenges from high debt and declining profits.
- Entry around ₹72–80 is favorable for long-term investors willing to tolerate risk.
- Hold for dividend yield and potential recovery, but closely monitor debt restructuring and earnings performance.