BANKINDIA - Investment Analysis

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

Investment Rating: 3.7

Here’s a detailed breakdown of Bank of India (BANKINDIA) as a long-term investment candidate

📊 Fundamental Analysis

Valuation & Earnings

P/E: 5.18 vs Industry P/E: 7.49 — undervalued relative to peers.

PEG Ratio: 0.12 — extremely attractive, suggesting strong earnings growth at a low valuation.

EPS: ₹20.8 — solid earnings base.

Profitability

ROE: 12.4% — decent return on equity.

ROCE: 6.17% — relatively low, indicating weaker capital efficiency.

Dividend Yield: 3.61%

Attractive for income-focused investors.

Balance Sheet

Debt-to-equity: 11.9 — very high, typical for banks but worth monitoring for asset quality risks.

Quarterly Performance

PAT up 16.8% QoQ — positive momentum.

FII holding down (-0.35%), DII up (+0.07%) — mixed institutional sentiment.

📈 Technical Indicators & Entry Zone

Current Price: ₹112

Trading below DMA-50 (₹116) and DMA-200 (₹113) — mild bearish sentiment.

RSI: 39.2 — approaching oversold zone.

MACD: -1.44 — bearish crossover.

🟢 Ideal Entry Zone: ₹102–₹108 This range offers a better margin of safety and aligns with technical support levels.

🧭 Exit Strategy / Holding Period

If you already hold the stock

📌 Consider a 3–5 year horizon, especially if you're targeting dividend income and value appreciation.

Monitor quarterly earnings and ROCE trends. If ROCE continues to weaken or PAT declines persist, reassess.

Exit Signals

Sustained drop below ₹100 with deteriorating fundamentals.

PEG ratio rising above 0.5 without EPS growth.

Continued FII outflows or macro headwinds in the banking sector.

🧾 Summary

Bank of India is a value play with strong ROE, attractive PEG ratio, and solid dividend yield. While ROCE and debt levels raise caution, its valuation and earnings potential make it a moderate-risk long-term hold. Ideal for investors seeking stability with upside potential.

Want to compare this with SBI or Canara Bank for a broader PSU banking view? I can help you build a sectoral strategy.

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