Current Rating and Its Significance
The Strong Buy rating assigned to Bank of Maharashtra indicates a compelling investment opportunity based on a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical outlook. This rating suggests that the stock is expected to outperform the broader market and peers in the public sector banking space, making it an attractive choice for investors seeking growth and value.
Quality Assessment
As of 20 February 2026, Bank of Maharashtra demonstrates strong operational quality. The bank maintains a low Gross Non-Performing Asset (NPA) ratio of 1.60%, reflecting prudent lending practices and effective risk management. This low level of stressed assets is a positive indicator of asset quality and credit discipline, which supports sustainable profitability.
Moreover, the bank has exhibited consistent fundamental strength, with net profits growing at a remarkable compound annual growth rate (CAGR) of 71.13%. This robust profit growth over the long term underscores the bank’s ability to expand its core operations efficiently and manage costs effectively.
Valuation Metrics
The valuation of Bank of Maharashtra is currently very attractive. Trading at a price-to-book value of 1.6, the stock is priced at a discount relative to its historical peer averages. This discount offers a margin of safety for investors while still providing exposure to a fundamentally strong bank.
Additionally, the company’s return on assets (ROA) stands at 1.7%, which is healthy for the banking sector. The stock also boasts a high dividend yield of 3.7%, providing income-oriented investors with a steady return alongside capital appreciation potential. The price-to-earnings-to-growth (PEG) ratio of 0.3 further indicates that the stock is undervalued relative to its earnings growth prospects.
Financial Trend and Performance
The latest data shows that Bank of Maharashtra continues to deliver very positive financial results. The bank’s net interest income, excluding other income, has grown at an annual rate of 21.57%, while net profit growth remains exceptionally strong at 71.13% CAGR. Operating profit has increased by 6.27%, and the bank has reported positive results for 21 consecutive quarters, signalling consistent operational momentum.
Key performance indicators as of the latest half-year include a credit-deposit ratio of 83.79%, which is among the highest in its category, indicating effective utilisation of deposits for lending activities. Quarterly interest earned reached a record high of ₹7,344.20 crores, while profit after tax (PAT) for the quarter stood at ₹1,779.33 crores, the highest recorded to date.
Technical Outlook
From a technical perspective, the stock exhibits a bullish trend. Recent price movements show strong momentum, with the stock gaining 1.65% in a single day and delivering returns of 37.49% over the past year. The upward trajectory is supported by positive investor sentiment and growing market interest, which may continue to drive the stock higher in the near term.
Stock Returns Snapshot
As of 20 February 2026, Bank of Maharashtra’s stock performance has been impressive across multiple time frames. The stock has appreciated by 1.65% in the last trading day, 5.59% over the past week, and 8.14% in the last month. Longer-term returns include 15.57% over three months, 25.19% over six months, and a year-to-date gain of 11.35%. The one-year return stands at a robust 37.49%, reflecting strong investor confidence and solid fundamentals.
Implications for Investors
The Strong Buy rating from MarketsMOJO suggests that Bank of Maharashtra is well-positioned for continued growth and value creation. Investors looking for exposure to the public sector banking sector may find this stock appealing due to its combination of quality fundamentals, attractive valuation, positive financial trends, and favourable technical indicators.
While the banking sector can be sensitive to macroeconomic factors and regulatory changes, Bank of Maharashtra’s consistent performance and prudent management provide a degree of resilience. The stock’s current valuation and dividend yield also offer a balanced risk-reward profile for both growth and income investors.
Momentum building strong! This Mid Cap from NBFC is on our MomentumNow radar. Other investors are catching on – will you join?
- - Building momentum strength
- - Investor interest growing
- - Limited time advantage
Summary
In summary, Bank of Maharashtra’s Strong Buy rating reflects a comprehensive assessment of its current strengths. The bank’s quality lending practices, very attractive valuation, strong financial growth, and bullish technical outlook combine to make it a compelling investment option. As of 20 February 2026, the stock’s performance and fundamentals support this positive stance, offering investors a well-rounded opportunity in the public sector banking space.
Investors should continue to monitor the bank’s quarterly results and sector developments, but the current data suggests that Bank of Maharashtra remains a stock with significant upside potential and a solid foundation for long-term wealth creation.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
