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MAHABANK - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.6

Last Updated Time : 22 Mar 26, 10:04 pm

Fundamental Rating: 3.6

Stock Code MAHABANK Market Cap 50,388 Cr. Current Price 65.5 ₹ High / Low 77.0 ₹
Stock P/E 7.75 Book Value 43.3 ₹ Dividend Yield 2.29 % ROCE 5.78 %
ROE 22.9 % Face Value 10.0 ₹ DMA 50 65.8 ₹ DMA 200 60.3 ₹
Chg in FII Hold 2.57 % Chg in DII Hold 3.44 % PAT Qtr 1,779 Cr. PAT Prev Qtr 1,633 Cr.
RSI 47.6 MACD -0.91 Volume 3,37,55,972 Avg Vol 1Wk 2,17,67,642
Low price 38.1 ₹ High price 77.0 ₹ PEG Ratio 0.11 Debt to equity 10.6
52w Index 70.4 % Qtr Profit Var 26.5 % EPS 8.45 ₹ Industry PE 7.61

📊 Financials: Bank of Maharashtra shows decent fundamentals with ROE at 22.9%, reflecting strong shareholder returns, though ROCE is modest at 5.78%. Debt-to-equity is high at 10.6, typical for banks but adds leverage risk. Quarterly PAT improved from 1,633 Cr. to 1,779 Cr. (+26.5%), showing resilience. EPS stands at 8.45 ₹, supported by a book value of 43.3 ₹.

💹 Valuation: Current P/E of 7.75 is slightly above the industry average of 7.61, suggesting fair valuation. P/B ratio is ~1.51x, indicating the stock trades above book value. PEG ratio of 0.11 highlights strong growth potential relative to valuation. Intrinsic value appears close to 60–65 ₹, aligning with current price levels.

🏢 Business Model & Advantage: Bank of Maharashtra operates as a public sector bank with diversified lending, retail, and corporate banking services. Its competitive advantage lies in government backing, scale, and strong domestic presence. However, modest ROCE and high leverage reflect capital intensity in banking.

📈 Entry Zone: Current price is 65.5 ₹, near DMA 50 (65.8 ₹) and above DMA 200 (60.3 ₹), showing consolidation. RSI at 47.6 indicates neutral momentum. A favorable entry zone would be 60–65 ₹. Long-term holding is advisable given fair valuation and strong fundamentals.

Positive

  • Strong ROE (22.9%) supports shareholder returns.

  • Quarterly PAT growth (+26.5%) shows resilience.

  • PEG ratio (0.11) indicates attractive growth potential.

  • FII holding increased (+2.57%) and DII holding increased (+3.44%), reflecting strong institutional confidence.

Limitation

  • ROCE (5.78%) is modest relative to peers.

  • High debt-to-equity (10.6) adds leverage risk.

Company Negative News

  • Stock trading below recent highs (77 ₹) indicates short-term weakness.

Company Positive News

  • FII and DII holdings increased significantly, showing strong investor confidence.

  • Quarterly PAT improved from 1,633 Cr. to 1,779 Cr.

Industry

  • Industry P/E at 7.61 highlights peers are valued similarly.

  • Banking sector benefits from credit growth but faces regulatory and asset quality risks.

Conclusion

⚖️ Bank of Maharashtra demonstrates resilience with strong ROE, steady profit growth, and fair valuation. Entry is advisable near 60–65 ₹. Long-term holding is justified given growth potential and sector strength, though modest ROCE and high leverage should be monitored.

Selva, MAHABANK is a PSU banking play with strong ROE and institutional support but modest ROCE. Would you like me to prepare a peer benchmarking overlay (ROE, ROCE, PEG, P/E filters) comparing it against other PSU banks for sector rotation clarity?

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