Bank Of India is Rated Strong Buy

Current Rating and Its Significance

MarketsMOJO’s Strong Buy rating for Bank Of India indicates a high conviction in the stock’s potential for superior returns relative to its peers and the broader market. This rating is based on a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical outlook. Investors can interpret this as a recommendation to consider the stock favourably within their portfolio, given its robust fundamentals and attractive market positioning.

Quality Assessment

As of 25 February 2026, Bank Of India demonstrates strong lending practices, reflected in its low Gross Non-Performing Assets (NPA) ratio of 2.26%. This figure is notably healthy within the public sector banking space, signalling effective risk management and asset quality. The bank has also maintained positive results for 18 consecutive quarters, underscoring consistent operational performance. Its Return on Assets (ROA) stands at 0.9%, which, while modest, is solid for a public sector bank and supports the quality grade assigned.

Valuation Metrics

The stock’s valuation is currently very attractive, trading at a Price to Book Value (P/BV) of 0.9. This suggests that the market values the company at less than its book value, offering a margin of safety for investors. Compared to its peers’ historical valuations, Bank Of India’s stock price appears fairly valued, if not undervalued, especially considering its strong profit growth. The Price/Earnings to Growth (PEG) ratio is an impressive 0.3, indicating that the stock’s price growth is well supported by its earnings growth, making it a compelling value proposition.

Financial Trend and Profitability

The latest data shows a remarkable compound annual growth rate (CAGR) of 51.96% in net profits, highlighting the bank’s accelerating profitability over the long term. For the past year, the stock has delivered a return of 78.06%, while profits have risen by 26.2%, reflecting strong earnings momentum. Quarterly figures reinforce this trend, with Profit Before Tax excluding Other Income (PBT less OI) at ₹1,337.98 crores, growing at 45.5% compared to the previous four-quarter average. Interest earned has also reached a record high of ₹18,927.13 crores, signalling robust core banking operations.

Technical Outlook

From a technical perspective, Bank Of India’s stock exhibits a bullish trend. Over the last six months, the stock price has surged by 51.94%, with a year-to-date gain of 21.39%. The one-month and three-month returns stand at 9.37% and 18.59% respectively, indicating sustained upward momentum. Despite a minor one-day decline of 0.57%, the overall technical indicators support continued strength, making it an attractive entry point for investors looking to capitalise on positive price action.

Market Capitalisation and Sector Context

Bank Of India is classified as a midcap stock within the public sector banking sector. This positioning offers a balance between growth potential and relative stability, as midcap banks often benefit from both expansion opportunities and established market presence. The bank’s strong fundamentals and valuation metrics position it favourably against sector peers, particularly in an environment where asset quality and profitability are key investor concerns.

Implications for Investors

For investors, the Strong Buy rating on Bank Of India suggests a favourable risk-reward profile. The combination of strong asset quality, attractive valuation, robust profit growth, and positive technical signals provides a compelling case for accumulation. While public sector banks can be subject to regulatory and macroeconomic challenges, Bank Of India’s consistent quarterly performance and prudent lending practices mitigate some of these risks.

Summary of Key Metrics as of 25 February 2026

The stock’s one-year return of 78.06% significantly outpaces many peers, reflecting strong market confidence. The bank’s Gross NPA ratio of 2.26% remains low, supporting credit quality. Net profit growth at a CAGR of 51.96% and a PBT less OI growth rate of 45.5% demonstrate operational strength. Valuation metrics such as a P/BV of 0.9 and PEG ratio of 0.3 indicate the stock is attractively priced relative to its earnings growth potential.

Conclusion

Bank Of India’s current Strong Buy rating by MarketsMOJO, last updated on 02 February 2026, is well justified by the company’s strong fundamentals, attractive valuation, positive financial trends, and bullish technical outlook as of 25 February 2026. Investors seeking exposure to the public sector banking space with a focus on quality and growth may find this stock a compelling addition to their portfolios.

Disclaimer

All financial data and returns mentioned are current as of 25 February 2026 and should be considered in the context of ongoing market conditions and individual investment objectives.

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