Canara Bank

Financial Services — Banks - Regional · NSE

₹118.29+₹1.17 (+1.00%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Canara Bank — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Canara Bank provides various banking products and services in India and internationally.

IndustryBanks - Regional

SectorFinancial Services

Employees81,827

Annual revenue₹64,175 Cr

How does it make money?

Turns over ₹64,175 Cr a year. Of every ₹100 of sales, about ₹31 reaches shareholders as profit. Each of its 81,827 employees supports ₹78.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹78.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What is the outlook?

18 analysts covering the stock expect revenue to grow about 13.4% and earnings to grow about 9.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.4%

Est. earnings growth+9.1%

Analysts18

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +16% while net margin moved +51% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+16%

Margin effect+51%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Shareholders fund only 6.2% of the balance sheet — a thinner cushion than most peers carry
• Capital adequacy, gross NPAs and provision coverage decide a lender's financial health, and none are available here — check the bank's own quarterly disclosure

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

5.3x

3Y Median

6.5x

40 monthly readings · mean 6.9x · range 4.8x–10.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 19% below its 3y median of 6.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 69% below the peer median of 17.0x.

vs. its own history

Fair

6.5x median over 40 months · -19%

vs. sector peers

Cheap

17.0x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.26

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 5.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Return on equity stays above 13%✓ 15.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 4% a year✓ 5.0% CAGR
Latest reported year was -13.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 6.5x✓ 5.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹1.07 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

5.3x

Cheap

Cheap against the generic band

P/B Ratio

0.84x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹22.47

Profitable

Profitable on a per-share basis

ROE

15.1%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

-13.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

10.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.55%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹6,652 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

4.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

1.0%

Weak

Assets generate little profit

Operating Margin

46.6%

Good

Healthy core-business profitability

Net Margin

46.5%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

120.8 / 124.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹55,377 Cr	₹66,120 Cr	₹71,194 Cr	₹64,175 Cr	+5.0%
PAT (Net Profit)	₹11,255 Cr	₹15,279 Cr	₹17,540 Cr	₹19,706 Cr	+20.5%
EPS	₹12.41	₹16.84	₹19.34	₹21.73	+20.5%
ROE	14.4%	16.6%	16.6%	16.7%	—
Total Debt	₹59,413 Cr	₹60,061 Cr	₹83,238 Cr	₹1.21 L Cr	+26.6%
Free Cash Flow	-₹40,591 Cr	₹13,793 Cr	₹60,669 Cr	₹6,652 Cr	—

🟢 Revenue has grown at 5.0% a year over 3 years.

🟢 PAT (Net Profit) has grown at 20.5% a year over 3 years.

🟢 EPS has grown at 20.5% a year over 3 years.

🟢 ROE has risen from 14.4% to 16.7% over 3 years (+2.3 pts).

🔴 Total Debt has grown at 26.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹40,591 Cr to ₹6,652 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18.87 L Cr

Total Liabilities

₹17.70 L Cr

Cash & Equivalents

₹2.06 L Cr

Operating Cash Flow

₹7,942 Cr

Capex

-₹1,290 Cr

Shareholding (proxy)

Institutional Holding

17.8%

Insider Holding

64.3%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹4.2

Ex-Dividend Date

12 Jun 2026

Analyst Consensus

Recommendations

17 Buy · 1 Hold · 2 Sell

Target Price (Mean)

₹149.52

+26.4% vs CMP

Target Range

₹109 – ₹175

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%