Central Bank of India is Rated Hold by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO currently assigns Central Bank of India a 'Hold' rating, reflecting a balanced view of the stock’s prospects. This rating suggests that investors should maintain their existing positions rather than aggressively buying or selling the stock at this time. The 'Hold' status indicates that while the stock shows potential, it also carries certain risks or uncertainties that warrant caution.

Rating Update Context

The rating was revised from 'Sell' to 'Hold' on 09 February 2026, accompanied by a Mojo Score increase from 46 to 51 points. This change signals an improvement in the company’s fundamentals and outlook, but the current recommendation remains cautious, reflecting a need for investors to carefully monitor developments before making significant portfolio adjustments.

Here’s How the Stock Looks Today

As of 21 February 2026, Central Bank of India’s financial and market data present a nuanced picture. The stock has delivered a one-day gain of 0.74%, with a one-week return of 3.96% and a one-month return of 3.90%. However, over the past year, the stock has underperformed significantly, posting a negative return of -19.05%, compared to the BSE500 index’s positive 11.96% return over the same period.

Quality Assessment

The company’s quality grade is assessed as average. Central Bank of India demonstrates strong long-term fundamental strength, with a compound annual growth rate (CAGR) of 44.88% in net profits. This robust profit growth is supported by positive results over the last three consecutive quarters, including a healthy PAT of ₹2,475.48 crores in the latest six months, which has grown by 32.25%. Asset quality metrics are also encouraging, with gross non-performing assets (NPA) at a low 2.70% and net NPA at 0.45%, indicating effective risk management and credit control.

Valuation Perspective

Valuation is a key factor underpinning the 'Hold' rating, with the stock graded as very attractive on this front. The price-to-book value stands at a modest 0.9, suggesting the stock is trading at a discount relative to its peers’ historical valuations. This valuation discount may appeal to value-oriented investors seeking exposure to the public sector banking space at a reasonable price. Additionally, the company’s price-to-earnings-to-growth (PEG) ratio is 0.3, indicating that earnings growth is not fully reflected in the current share price, which could signal potential upside if growth sustains.

Financial Trend Analysis

The financial grade is positive, reflecting the company’s consistent earnings growth and improving profitability. The latest data shows that Central Bank of India has maintained a return on assets (ROA) of 0.9%, which is respectable within the banking sector. The steady increase in net profits and positive quarterly results underscore a favourable financial trajectory, although the stock’s recent price performance has not yet caught up with these fundamentals.

Technical Outlook

From a technical standpoint, the stock is graded as mildly bearish. Despite short-term gains in the past week and month, the three-month return is slightly negative at -0.80%, and the one-year price trend remains weak. This technical caution advises investors to be mindful of potential volatility and to consider technical signals alongside fundamental analysis when making investment decisions.

Market Position and Shareholding

Central Bank of India is classified as a small-cap stock within the public sector banking sector. The majority shareholding is held by promoters, which often provides stability in ownership and strategic direction. However, the stock’s underperformance relative to the broader market index over the past year highlights the challenges it faces in regaining investor confidence and market momentum.

What the Hold Rating Means for Investors

For investors, the 'Hold' rating on Central Bank of India suggests a cautious approach. The stock’s attractive valuation and positive financial trends offer a foundation for potential gains, but the mild technical weakness and recent underperformance relative to the market temper enthusiasm. Investors currently holding the stock may consider maintaining their positions while monitoring quarterly results and market developments closely. Prospective buyers might wait for clearer technical signals or further fundamental improvements before initiating new positions.

Summary of Key Metrics as of 21 February 2026

To summarise, the stock’s key metrics as of today include:

• Mojo Score: 51.0 (Hold grade)
• Net Profit CAGR: 44.88%
• Gross NPA: 2.70%
• Net NPA: 0.45%
• PAT Growth (latest six months): 32.25%
• ROA: 0.9%
• Price to Book Value: 0.9
• PEG Ratio: 0.3
• 1-Year Stock Return: -19.05%
• BSE500 1-Year Return Benchmark: +11.96%

These figures highlight the company’s strong earnings growth and attractive valuation, balanced against recent price weakness and technical caution.

Outlook

Looking ahead, Central Bank of India’s ability to sustain profit growth and improve asset quality will be critical to enhancing investor sentiment and driving share price appreciation. The current 'Hold' rating reflects this balance of opportunity and risk, advising investors to stay informed and consider both fundamental and technical factors in their decision-making process.

Conclusion

In conclusion, Central Bank of India’s 'Hold' rating by MarketsMOJO as of 09 February 2026, supported by a Mojo Score of 51, reflects a stock with solid fundamentals and attractive valuation but tempered by technical caution and recent underperformance. Investors should weigh these factors carefully, recognising the stock’s potential for recovery alongside the need for prudent risk management.

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