Indian Bank (INDIANB) 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 Baroda

Canara Bank

Bank Of India

Bank of Maha

Indian Bank

Punjab Natl.Bank

Union Bank (I)

I O B

SBI

Central Bank

UCO Bank

Why is Indian Bank ?

Strong lending practices with low Gross NPA ratio of 2.60%

Strong Long Term Fundamental Strength with a 70.83% CAGR growth in Net Profits

Healthy long term growth as Net profit has grown by an annual rate of 70.83%

The company has declared Positive results for the last 14 consecutive quarters

GROSS NPA(Q) Lowest at 2.60%
INTEREST EARNED(Q) Highest at Rs 16,589.94 cr
PAT(Q) Highest at Rs 3,018.22 cr.

With ROA of 1.3, it has a Fair valuation with a 1.4 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 35.53%, its profits have risen by 24.5% ; the PEG ratio of the company is 0.4

High Institutional Holdings at 23.29%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.69% over the previous quarter.

Consistent Returns over the last 3 years

Along with generating 35.53% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Indian Bank should be less than 10%
Overall Portfolio exposure to Public Sector Bank should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Indian Bank for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Indian Bank

35.51%

1.22

29.12%

Sensex

4.78%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Net Interest Income Growth (5y)

16.24%

Net Profit Growth (5y)

70.83%

Advance to Deposit

72.64%

Capital Adequacy Ratio (Tier 1)

13.43%

Gross NPA (latest)

2.60%

Gross NPA (avg)

5.58%

Coverage Ratio (avg)

84.73%

Cost to Income (avg)

45.70%

Net Interest Margin (avg)

3.17%

Operating Profit to Assets (avg)

4.17%

ROA (avg)

0.93%

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

1.44

PEG Ratio

0.37

Dividend Yield

2.02%

ROE (Latest)

15.67%

ROA (Latest)

1.28%

Net NPA to Book Value

1.31

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Bullish

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

15What is working for the Company

GROSS NPA(Q)

Lowest at 2.60%

INTEREST EARNED(Q)

Highest at Rs 16,589.94 cr

PAT(Q)

Highest at Rs 3,018.22 cr.

NET NPA(Q)

Lowest at 0.16%

NII(Q)

Highest at Rs 6,550.96 cr

EPS(Q)

Highest at Rs 22.41

-1What is not working for the Company

NON-OPERATING INCOME(Q)

is 60.68 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Indian Bank

Gross NPA - Quarterly

Lowest at 2.60% and Fallen

each quarter in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Gross NPA (%)

Interest Earned - Quarterly

Highest at Rs 16,589.94 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Interest Earned (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 3,018.22 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 0.16% 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 6,550.96 cr

in the last five quarters

MOJO Watch

The bank's income from core business is increasing

Net Interest Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 22.41

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Indian Bank

Non Operating Income - Quarterly

is 60.68 % 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