MAHABANK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

Here’s a full-scale review of Bank of Maharashtra (MAHABANK), a PSU bank that’s quietly gaining ground in the retail and MSME segment

🧾 Core Financials & Profitability

EPS: ₹7.63 — decent for its price band, supports earnings-based valuation.

PAT Trend: ₹1,504 Cr (up 16.2%) — solid improvement showing operating efficiency.

ROE: 22.8% — outstanding, among the best in PSU banking space.

ROCE: 5.72% — low, common for public banks with heavy capital structures.

Debt-to-Equity: 11.5 — expected for banks due to deposit liabilities.

Dividend Yield: 2.64% — attractive, adds to total return appeal.

💸 Valuation Indicators

P/E Ratio: 7.58 vs Industry PE: 7.49 — almost at parity, but fair given strong ROE.

P/B Ratio: ~1.52 (₹56.8 ÷ ₹37.3) — slightly high for a PSU bank; indicates growth optimism.

PEG Ratio: 0.11 — stellar value indicator; suggests strong earnings at low price.

Intrinsic Value: Likely above current market price — good margin of safety based on earnings and ROE.

🧠 Business Model & Strategic Positioning

Segment: PSU banking focused on retail loans, MSME credit, and government-backed schemes.

Strengths

High asset productivity and expanding loan book.

Prudent management reflected in PAT growth.

ROE outperformance relative to peers.

Risks

Capital adequacy pressures and regulatory drag.

DII holding decline (–0.27%) may imply reallocation.

Low ROCE and systemic PSU valuation discount.

📉 Technical & Sentiment Indicators

RSI: 54.3 — neutral zone; no strong momentum signal.

MACD: +0.45 — mild bullish momentum.

Volume: Below average — subdued interest, may be due to broader market rotation.

🎯 Suggested Entry Zone

₹52 – ₹56: Attractive entry near DMA 200.

Watch for dips or volume spikes near ₹50 for stronger conviction buys.

📈 Long-Term Holding Perspective

Horizon: 3–5 years

Growth drivers

High ROE sustainability.

Government-backed financial inclusion initiatives.

Digitization drive and improving credit quality.

Could serve as a high-yielding anchor in PSU-focused portfolios.

Want me to benchmark MAHABANK against regional PSU players like UCO, Indian Bank, or Central Bank? I can prepare a comparative scorecard on value, growth, and dividend metrics. Let’s make it insightful.

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