MAHABANK - 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 Maharashtra (MAHABANK), a fast-improving public sector bank with strong regional presence. 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: ₹7.71 — solid for a PSU bank

PAT Qtr: ₹1,593 Cr vs ₹1,493 Cr — +6.7% QoQ, and +23.1% YoY — strong growth momentum

ROE: 22.9% — exceptional for a public sector bank

ROCE: 5.78% — modest, but typical for the sector

Debt-to-equity: 10.9 — expected for banks, not a red flag

Balance Sheet & Dividend

Book Value: ₹39.2 — price-to-book ratio ~1.46, slightly premium

Dividend Yield: 2.62% — attractive for income investors

FII holdings up (+0.17%), DII slightly down — mixed institutional sentiment

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 7.57 Fairly valued vs industry PE of 7.91

P/B Ratio ~1.46 Slight premium to book value

PEG Ratio 0.11 Deep value — strong growth at low valuation

Intrinsic Value ~₹60–₹62 Trading slightly below fair value

Valuation is attractive, especially with a low PEG ratio and strong ROE.

🏦 Business Model & Competitive Edge

Industry: Banking — essential, regulated, and cyclical

Moat: Strong regional footprint, improving asset quality, digital banking push

Catalysts

Government-backed growth in retail and MSME lending

High ROE and consistent profit growth

Strong 5-year return of over 400%

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Bank of Maharashtra is emerging as a high-efficiency PSU bank with strong fundamentals and improving investor sentiment

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📉 Technical & Entry Zone

Current Price: ₹57.2

DMA 50/200: Trading above both — bullish trend

MACD: +0.35 — mild positive momentum

RSI: 65.7 — nearing overbought zone

📌 Suggested Entry Zone: ₹54–₹56

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

🕰️ Long-Term Holding Guidance

Hold if already invested — strong ROE and growth trajectory

Buy on dips near ₹55 for long-term compounding

2026 Target Price: ₹70–₹75 based on projected earnings and sector tailwinds

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⭐ Fundamental Rating

4.5

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stockpricearchive.com

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trendlyne.com

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