RBLBANK - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.6

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📊 Fundamental Analysis Report

• Stock Code: RBLBANK
• Market Cap: ₹19,990 Cr
• Current Price: ₹326
• 52W High/Low: ₹331 / ₹146
• EPS: ₹7.87
• Stock P/E: 41.7 vs Industry P/E: 14.6 ❗
• PEG Ratio: 0.33 🟢 (Undervalued vs Growth)
• Book Value: ₹259 | P/B Ratio: ~1.26 ✅
• ROE: 4.57% | ROCE: 6.04% 🔻
• Debt to Equity: 8.32 ❗ (Highly Leveraged)
• Dividend Yield: 0.31% 🚫
• Quarterly PAT: ₹179 Cr (↓10.5%)
• RSI: 71.0 | MACD: 13.7 📈

✅ Positive

• PEG and P/B ratios suggest attractive valuation relative to growth and assets.
• Price trading above DMA 50 and 200 confirms bullish technical momentum.
• Strong 52-week performance with 97.1% return reflects investor optimism.
• DII holding increased by 0.91%, indicating domestic institutional confidence.

⚠️ Limitation

• High P/E ratio compared to industry average suggests overvaluation.
• ROE and ROCE are modest, indicating weak capital efficiency.
• Debt-to-equity ratio of 8.32 signals high financial leverage and risk.
• RSI above 70 suggests overbought conditions, caution for short-term entry.

📉 Company Negative News

• FII holding declined by 2.07%, signaling reduced foreign investor confidence.
• Quarterly PAT dropped from ₹200 Cr to ₹179 Cr.

📈 Company Positive News

• Stock has nearly doubled in the past year, showing strong market sentiment.
• MACD and DMA trends support continued bullish momentum.

🏦 Industry

• RBLBANK operates in the private sector banking space.
• Industry P/E of 14.6 is significantly lower, suggesting RBLBANK trades at a premium.
• Sector benefits from credit expansion, digital banking, and economic recovery.

🧭 Conclusion

• Entry Zone: ₹295–₹310 (near DMA 50 and RSI neutral)
• Long-Term View: Valuation metrics and technical strength support long-term potential, but leverage and earnings volatility warrant cautious accumulation.