Consistent Outperformance Against Benchmarks
Bank of Maharashtra has demonstrated remarkable resilience and growth compared to broader market indices. Over the past week, the stock gained 4.77%, while the Sensex declined by 0.99%. This positive momentum extends over longer periods as well, with the bank delivering a 15.82% return year-to-date against the Sensex’s 8.36%. Over one year, the stock’s return of 18.18% significantly outpaces the Sensex’s 8.21%, and over three years, the bank’s gains of 98.23% dwarf the benchmark’s 39.17%. Even on a five-year horizon, Bank of Maharashtra’s stellar 362.94% return far exceeds the Sensex’s 77.34%, underscoring its sustained market-beating performance.
Technical Strength and Trading Activity
On 30-Dec, the stock traded close to its 52-week high, just 1.8% shy of ₹61.55, signalling strong upward momentum. It outperformed its sector by 3.15% and has recorded gains for two consecutive days, accumulating a 6.07% return in this short span. Intraday, the stock touched a high of ₹60.89, marking a 5.42% increase. Notably, Bank of Maharashtra is trading above all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicating a robust bullish trend. Investor participation has also surged, with delivery volumes on 29 Dec rising by 39.3% to 62.94 lakh shares compared to the five-day average, reflecting heightened market interest and liquidity sufficient to support sizeable trades.
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Strong Fundamental Performance Underpinning Gains
The bank’s rise is firmly anchored in its solid fundamentals. It boasts a low Gross Non-Performing Asset (NPA) ratio of 1.72%, reflecting prudent lending practices and asset quality. Its net profits have exhibited an extraordinary compound annual growth rate (CAGR) of 70.60%, signalling exceptional profitability expansion. Net Interest Income, excluding other income, has grown at an annual rate of 21.64%, further highlighting the bank’s core earnings strength.
Recent quarterly results reinforce this positive narrative. For the quarter ending September 2025, Bank of Maharashtra reported its highest-ever interest earned at ₹7,128.38 crore. Profit before tax excluding other income surged by 44.4% compared to the previous four-quarter average, reaching ₹973.15 crore. Net profit for the quarter also hit a record ₹1,633.14 crore. The bank has consistently declared positive results for 20 consecutive quarters, underscoring its operational stability and growth trajectory.
Valuation and Institutional Confidence
From a valuation perspective, the bank remains attractively priced with a price-to-book value of 1.5 and a return on assets (ROA) of 1.6%. Its price-to-earnings-to-growth (PEG) ratio stands at a modest 0.5, indicating undervaluation relative to its earnings growth potential. Institutional investors have recognised this value, increasing their stake by 5.02% over the previous quarter to hold 17.42% collectively. This growing institutional participation reflects confidence from investors with the resources and expertise to assess the bank’s strong fundamentals.
Bank of Maharashtra is also highly rated by MarketsMojo, ranking among the top 1% of over 4,000 stocks analysed. It holds the fourth position among mid-cap companies and seventh across the entire market, further validating its quality and investment appeal.
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Conclusion: Why the Stock Is Rising
The recent rise in Bank of Maharashtra’s share price is a reflection of its strong financial health, consistent earnings growth, and superior market performance relative to benchmarks. The stock’s proximity to its 52-week high, combined with rising volumes and sustained gains over multiple time frames, signals robust investor demand. Its attractive valuation metrics and increasing institutional ownership further bolster confidence in the stock’s prospects. Collectively, these factors explain why Bank of Maharashtra is experiencing a notable upward trajectory in its share price as of 30 December.
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