Rating Overview and Context
On 15 December 2025, MarketsMOJO revised Central Bank of India's rating from 'Sell' to 'Hold', reflecting a significant improvement in its overall Mojo Score, which rose by 21 points from 46 to 67. This shift indicates a more balanced outlook on the stock, suggesting that while it may not be a strong buy, it is no longer considered a sell. The 'Hold' rating implies that investors should maintain their current positions and monitor the stock closely for further developments.
Here’s How the Stock Looks Today
As of 07 January 2026, Central Bank of India is classified as a midcap stock within the Public Sector Bank sector. The company’s current Mojo Grade is 'Hold', supported by a composite Mojo Score of 67.0. This score is derived from a detailed assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall recommendation and offers insight into the stock’s investment potential.
Quality Assessment
The quality grade for Central Bank of India is considered average. Despite some challenges in recent years, the bank demonstrates strong long-term fundamental strength, evidenced by a compound annual growth rate (CAGR) of 43.38% in net profits. This robust profit growth highlights the bank’s ability to generate earnings consistently over time. Additionally, the bank reported its highest quarterly profit after tax (PAT) of ₹1,212.88 crores in September 2025, signalling operational improvements. The gross non-performing assets (NPA) ratio also reached a low of 3.01% in the same quarter, indicating better asset quality management.
Valuation Perspective
Valuation is a standout positive for Central Bank of India, with a 'very attractive' grade. The stock currently trades at a price-to-book (P/B) ratio of 0.9, which is below the average historical valuations of its peers. This discount suggests that the stock is undervalued relative to its intrinsic worth and sector benchmarks. The return on assets (ROA) stands at 0.9%, reinforcing the bank’s efficient use of its asset base. Moreover, the company’s price/earnings to growth (PEG) ratio is a low 0.3, indicating that the stock’s price is reasonable compared to its earnings growth potential. Despite the stock delivering a negative return of -27.72% over the past year, profits have risen by 31.8% during the same period, underscoring a disconnect between market price and fundamental performance.
Financial Trend Analysis
The financial grade for Central Bank of India is positive, reflecting encouraging trends in cash flow and profitability. The operating cash flow for the year reached its highest level at ₹-2,468.93 crores, which, while negative, is an improvement compared to previous years. The bank’s ability to generate increasing profits alongside improving asset quality suggests a stabilising financial position. However, it is important to note that the stock has underperformed relative to the BSE500 index over the past one year, three years, and three months, indicating that market sentiment has yet to fully embrace the bank’s turnaround story.
Technical Outlook
From a technical standpoint, the stock is graded as mildly bullish. Recent price movements show modest gains over the short term, with a 1-week return of +2.51% and a 1-month return of +3.96%. Year-to-date, the stock has also gained 2.51%, although the six-month return remains negative at -2.57%. The slight upward momentum suggests cautious optimism among traders, but the stock’s longer-term price performance remains subdued. The day change on 07 January 2026 was a minor decline of -0.13%, reflecting typical market fluctuations.
Implications for Investors
The 'Hold' rating for Central Bank of India indicates that investors should neither rush to buy nor sell the stock at this stage. The bank’s improving fundamentals and attractive valuation provide a solid foundation for potential future gains. However, the recent underperformance relative to broader market indices and the modest technical signals suggest that the stock may require further confirmation of its turnaround before becoming a compelling buy. Investors with a medium to long-term horizon may consider maintaining their positions while monitoring quarterly results and sector developments closely.
Shareholding and Market Capitalisation
Central Bank of India is classified as a midcap stock, with promoters holding the majority of shares. This stable shareholding structure can provide some degree of confidence in management’s strategic direction and commitment to value creation. The bank’s position within the public sector banking space also means it operates under regulatory oversight, which can influence its risk profile and growth prospects.
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Summary of Key Metrics as of 07 January 2026
To summarise, Central Bank of India’s current metrics present a mixed but cautiously optimistic picture:
- Mojo Score: 67.0 (Hold grade)
- Net Profit CAGR: 43.38%
- Gross NPA: 3.01% (lowest recent level)
- Price to Book Value: 0.9 (very attractive valuation)
- PEG Ratio: 0.3 (indicating undervaluation relative to growth)
- 1-Year Stock Return: -27.72%
- ROA: 0.9%
- Operating Cash Flow (Yearly): ₹-2,468.93 crores (improving)
These figures highlight the bank’s improving profitability and valuation appeal, balanced against recent stock price underperformance and moderate technical momentum.
Outlook and Considerations
Investors should view the 'Hold' rating as a signal to maintain vigilance. The bank’s strong profit growth and attractive valuation suggest potential upside, but the stock’s recent price weakness and sector challenges warrant a measured approach. Monitoring upcoming quarterly results and macroeconomic factors affecting the public sector banking industry will be crucial in assessing whether the stock can transition to a more favourable rating in the near future.
Conclusion
Central Bank of India’s current 'Hold' rating by MarketsMOJO reflects a balanced view of the stock’s prospects as of 07 January 2026. While the bank shows encouraging signs of financial improvement and attractive valuation metrics, the stock’s recent price performance and technical signals counsel caution. For investors, this rating suggests maintaining existing holdings while carefully observing the company’s ongoing operational and market developments.
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