Indian Overseas Bank (IOB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bank of Maha

Bank Of Baroda

Union Bank (I)

Bank Of India

Punjab Natl.Bank

Indian Bank

Canara Bank

Central Bank

UCO Bank

I O B

Pun. & Sind Bank

Why is Indian Overseas Bank ?

Below par performance in long term as well as near term

Along with generating -32.71% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Public Sector Bank)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is I O B for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

I O B

-32.6%

-1.05

31.05%

Sensex

8.01%

0.71

11.36%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Net Interest Income Growth (5y)

11.22%

Net Profit Growth (5y)

52.72%

Advance to Deposit

70.77%

Capital Adequacy Ratio (Tier 1)

13.57%

Gross NPA (latest)

1.54%

Gross NPA (avg)

5.32%

Coverage Ratio (avg)

80.34%

Cost to Income (avg)

50.43%

Net Interest Margin (avg)

2.95%

Operating Profit to Assets (avg)

4.37%

ROA (avg)

0.76%

Net Debt to Equity (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Price to Book Value

1.83

PEG Ratio

0.27

Dividend Yield

ROE (Latest)

13.11%

ROA (Latest)

1.06%

Net NPA to Book Value

1.95

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

GROSS NPA(Q)

Lowest at 1.54%

PAT(Q)

Highest at Rs 1,365.12 cr.

NET NPA(Q)

Lowest at 0.24%

NII(Q)

Highest at Rs 3,298.54 cr

CREDIT DEPOSIT RATIO(HY)

Highest at 83.34%

INTEREST EARNED(Q)

Highest at Rs 8,172.39 cr

PBDIT(Q)

Highest at Rs 1,103.91 cr.

EPS(Q)

Highest at Rs 0.71

-6What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 14,389.84 cr

PBT LESS OI(Q)

Lowest at Rs -131.74 cr.

NON-OPERATING INCOME(Q)

is 109.63 % of Profit Before Tax (PBT

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Here's what is working for I O B

Gross NPA - Quarterly

Lowest at 1.54% and Fallen

each quarter in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Gross NPA (%)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1,365.12 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net NPA - Quarterly

Lowest at 0.24% and Fallen

each quarter in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Net NPA (%)

Net Interest Income (Quarterly)

Highest at Rs 3,298.54 cr

in the last five quarters

MOJO Watch

The bank's income from core business is increasing

Net Interest Income (Rs Cr)

Interest Earned - Quarterly

Highest at Rs 8,172.39 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Interest Earned (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 1,103.91 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1,365.12 cr has Grown at 28.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1,065.55 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.71

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Credit Deposit Ratio - Half Yearly

Highest at 83.34%

in the last four periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Here's what is not working for I O B

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -131.74 cr has Fallen at -270.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 77.08 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -131.74 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 109.63 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 14,389.84 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

CAR - Quarterly

Lowest at 16.30%

in the last five quarters

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)