⚠ 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 | 1,05,782 Cr. | Current Price | 98.4 ₹ | High / Low | 118 ₹ |
| Stock P/E | 11.0 | Book Value | 64.0 ₹ | Dividend Yield | 2.14 % | ROCE | 6.76 % |
| ROE | 13.6 % | Face Value | 10.0 ₹ | DMA 50 | 100 ₹ | DMA 200 | 94.7 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | 0.01 % | PAT Qtr | 1,935 Cr. | PAT Prev Qtr | 3,627 Cr. |
| RSI | 45.4 | MACD | -0.99 | Volume | 1,61,92,542 | Avg Vol 1Wk | 1,04,10,119 |
| Low price | 66.1 ₹ | High price | 118 ₹ | PEG Ratio | 0.24 | Debt to equity | 4.87 |
| 52w Index | 61.6 % | Qtr Profit Var | 1.42 % | EPS | 8.95 ₹ | Industry PE | 15.8 |
📊 Core Financials
- Revenue & Profitability: PAT declined from 3,627 Cr. to 1,935 Cr. QoQ, showing pressure on earnings. EPS at 8.95 ₹ remains moderate.
- Margins: ROE at 13.6% is decent, but ROCE at 6.76% indicates limited efficiency in capital utilization.
- Debt: Debt-to-equity ratio of 4.87 is high, reflecting significant leverage risk.
- Cash Flow: Dividend yield of 2.14% suggests some shareholder return, but sustainability depends on earnings stability.
💹 Valuation Indicators
- P/E Ratio: 11.0 vs Industry PE of 15.8 → undervalued compared to peers.
- P/B Ratio: Current Price (98.4 ₹) / Book Value (64 ₹) ≈ 1.54, reasonable for a financial institution.
- PEG Ratio: 0.24 indicates attractive valuation relative to growth.
- Intrinsic Value: Suggests undervaluation, with price near support levels (DMA 200 at 94.7 ₹).
🏦 Business Model & Competitive Advantage
- IDBI operates as a mid-sized bank with a focus on retail and corporate lending.
- Competitive advantage lies in legacy presence and government backing, though high debt levels limit flexibility.
- Improving asset quality and efficiency will be key to sustaining growth.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between 90 ₹ – 95 ₹ (near DMA 200 support).
- Long-Term Holding: Suitable for investors seeking undervalued banking exposure, but monitor debt levels and profitability trends.
✅ Positive
- Undervalued compared to industry peers.
- Strong ROE at 13.6%.
- PEG ratio indicates growth potential at low valuation.
⚠️ Limitation
- High debt-to-equity ratio (4.87).
- Weak ROCE (6.76%) shows inefficient capital use.
- Quarterly profit decline raises concerns on earnings stability.
📉 Company Negative News
- Recent quarterly PAT dropped significantly, showing earnings pressure.
- High leverage continues to weigh on investor confidence.
📈 Company Positive News
- Improved FII and DII holdings, albeit marginal.
- Dividend yield of 2.14% provides steady shareholder return.
🏭 Industry
- Banking sector PE at 15.8 indicates overall higher valuations.
- Sector growth driven by credit expansion and digital adoption.
- Competition from private banks remains strong.
🔎 Conclusion
- IDBI appears undervalued with decent ROE and attractive PEG ratio.
- However, high debt and declining profits pose risks.
- Best suited for cautious long-term investors entering near 90–95 ₹, with close monitoring of debt reduction and profitability improvement.
Would you like me to also prepare a comparative HTML report showing IDBI against top private banks like HDFC and ICICI for a clearer sector perspective?