MAHABANK - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:14 pm
Back to Fundamental ListFundamental Rating: 4.0
| Stock Code | MAHABANK | Market Cap | 44,096 Cr. | Current Price | 57.3 ₹ | High / Low | 61.6 ₹ |
| Stock P/E | 7.22 | Book Value | 41.1 ₹ | Dividend Yield | 2.61 % | ROCE | 5.78 % |
| ROE | 22.9 % | Face Value | 10.0 ₹ | DMA 50 | 57.5 ₹ | DMA 200 | 55.6 ₹ |
| Chg in FII Hold | 2.79 % | Chg in DII Hold | 2.34 % | PAT Qtr | 1,633 Cr. | PAT Prev Qtr | 1,593 Cr. |
| RSI | 43.1 | MACD | -0.47 | Volume | 77,56,179 | Avg Vol 1Wk | 81,86,104 |
| Low price | 38.1 ₹ | High price | 61.6 ₹ | PEG Ratio | 0.11 | Debt to equity | 10.6 |
| 52w Index | 82.0 % | Qtr Profit Var | 23.1 % | EPS | 7.96 ₹ | Industry PE | 7.89 |
📊 Financials: Bank of Maharashtra shows strong fundamentals with ROE at 22.9%, reflecting efficient shareholder returns, though ROCE at 5.78% is modest. EPS stands at ₹7.96, supported by consistent profitability. Debt-to-equity ratio of 10.6 is high but typical for banks, reflecting reliance on deposits and borrowings. Quarterly PAT improved to ₹1,633 Cr. from ₹1,593 Cr., showing steady earnings growth (+23.1% YoY).
💹 Valuation: Current P/E of 7.22 is slightly below the industry average of 7.89, suggesting undervaluation. P/B ratio (~1.39) is reasonable given book value of ₹41.1. PEG ratio of 0.11 indicates strong earnings growth potential relative to valuation. Intrinsic value appears higher than current price, offering margin of safety.
🏦 Business Model: Bank of Maharashtra operates as a public sector bank with strong retail and SME lending presence. Competitive advantage lies in government backing, wide branch network, and growing institutional support. However, asset quality and credit costs remain key risks in the sector.
📈 Entry Zone: Attractive accumulation zone is around ₹52–₹56 (near DMA 200 support). Current price ₹57.3 is close to DMA 50 and DMA 200, suggesting consolidation. RSI at 43.1 indicates neutral momentum, while MACD (-0.47) signals mild weakness.
🕰️ Long-Term Guidance: Bank of Maharashtra is a fundamentally strong public sector bank with undervaluation and consistent profitability. Best strategy is to accumulate near support levels and hold for long-term compounding, leveraging its government backing and retail growth potential.
Positive
- Strong ROE (22.9%) indicates efficient shareholder returns 💪
- Undervalued with P/E (7.22) below industry average 📊
- Quarterly PAT growth from ₹1,593 Cr. to ₹1,633 Cr. 🚀
- FII holdings increased (+2.79%) and DII holdings increased (+2.34%), showing strong institutional confidence 📈
Limitation
- ROCE at 5.78% is modest 📉
- High debt-to-equity ratio (10.6) reflects leverage risk ⚠️
- Dividend yield at 2.61% is moderate compared to peers 💵
Company Negative News
- MACD (-0.47) indicates short-term weakness ⚠️
Company Positive News
- Quarterly PAT growth (+23.1% YoY) highlights strong earnings momentum 🚀
- Strong institutional inflows (FII +2.79%, DII +2.34%) 📊
Industry
- Banking sector benefits from rising retail lending and digital adoption 🏦
- Industry P/E at 7.89 indicates fair valuation compared to Bank of Maharashtra’s discount 📊
Conclusion
⚖️ Bank of Maharashtra is a fundamentally strong public sector bank with undervaluation, government backing, and consistent profitability. While modest ROCE and high leverage are concerns, long-term prospects remain intact. Best strategy is to accumulate near ₹52–₹56 and hold for steady compounding.
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