IDBI - Investment Analysis

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

🏦 Investment Analysis: IDBI Bank Ltd.

Investment Rating: 3.9

📊 Fundamental Overview

ROE: 13.6% — solid, hovering close to private sector benchmarks.

ROCE: 6.78% — lower, yet typical in banking given capital-heavy structure.

P/E Ratio: 12.6 matches industry average — suggests fair valuation, neither under- nor overpriced.

PEG Ratio: 0.28 — extremely attractive; signifies significant earnings growth relative to valuation.

EPS: ₹7.36 — decent for its price range and cap level.

Dividend Yield: 2.26% — adds a comfortable income component.

Debt-to-Equity: 5.35 — expectedly high in financials, not a negative in this context.

🔍 Technical & Momentum Insights

RSI: 40.2 — mildly oversold, possible accumulation zone.

MACD: -0.76 — shows short-term weakness but not deeply bearish.

Trading just below 50-DMA but above 200-DMA — neutral to slightly bearish bias.

Volume down from 1-week average — weaker momentum, but not alarming.

🎯 Ideal Entry Price Zone: ₹80 – ₹90 This range is close to long-term support (DMA 200: ₹86.8) and safely below recent highs. Buying here offers cushion from volatility and valuation risk.

🧭 Holding Strategy / Exit Plan

If you already hold IDBI, consider this path

✅ Hold Strategy

Holding Period: 2–4 years

Stay invested if

ROE sustains ≥13%

EPS continues rising

PEG remains <1

PAT holds steady >₹2,000 Cr quarterly

🚪 Exit Signals

Partial Exit: ₹105–₹110, near 52-week high — ideal for profit-taking.

Full Exit If

PEG climbs above 1.2 without EPS improvement

ROE drops below 11%

Earnings decline over 2+ consecutive quarters

RSI hits 70+, signaling near-term peak

IDBI is no longer the turnaround story it once was—it’s pivoting into steady profitability territory, quietly compounding without the spotlight. If you're hunting for a banking pick with upside potential and a defensive yield kicker, this one deserves a slot in your watchlist. Want me to layer in privatization possibilities or benchmark it against PSU peers like Bank of India or Union Bank? I’m all ears. 📉📘

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