Indian Bank

Financial Services — Banks - Regional · NSE

₹854.10+₹19.10 (+2.29%)

DalalBaazaar Score

79 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

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 Indian Bank — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Indian Bank provides various banking products and services. It offers deposit products, including savings bank and current accounts, term deposits, and non-resident Indian (NRI) accounts.

IndustryBanks - Regional

SectorFinancial Services

Employees40,161

Annual revenue₹37,794 Cr

How does it make money?

Turns over ₹37,794 Cr a year. Of every ₹100 of sales, about ₹31 reaches shareholders as profit. Each of its 40,161 employees supports ₹94.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹94.1 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?

14 analysts covering the stock expect revenue to grow about 9.6% and earnings to grow about 10.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.6%

Est. earnings growth+10.6%

Analysts14

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +35% while net margin moved +56% 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+35%

Margin effect+56%

DalalBaazaar Score

79/ 100

Good

Weighted across six categories. Every point is explained below.

• Shareholders fund 8.1% of the balance sheet, which is within the normal range for a bank
• 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

79/ 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

8.7x

3Y Median

9.8x

40 monthly readings · mean 9.9x · range 7.7x–13.6x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 11% below its 3y median of 9.8x. 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 49% below the peer median of 17.0x.

vs. its own history

Fair

9.8x median over 40 months · -11%

vs. sector peers

Cheap

17.0x median of 4 peers · -49%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.31

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 11.3% to 14.6%.
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 49% 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?

No clear risk case emerges from the available numbers — which is not the same as there being none.

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

1Revenue growth stays above 8% a year✓ 10.4% CAGR
Latest reported year was 14.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 14%✓ 16.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 9.8x✓ 8.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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

10 good · 1 neutral · 0 weak

Market Cap

₹1.15 L Cr

Large Cap

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

P/E (Trailing)

8.7x

Cheap

Cheap against the generic band

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹98.13

Profitable

Profitable on a per-share basis

ROE

16.1%

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

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

14.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.14%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹18,361 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

7.5x

Improving

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

ROA

1.3%

Weak

Assets generate little profit

Operating Margin

49.9%

Good

Healthy core-business profitability

Net Margin

36.4%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

825.3 / 854.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28,072 Cr	₹31,893 Cr	₹35,223 Cr	₹37,794 Cr	+10.4%
PAT (Net Profit)	₹5,572 Cr	₹8,419 Cr	₹11,261 Cr	₹11,704 Cr	+28.1%
EPS	₹44.74	₹66.03	₹83.61	₹86.89	+24.8%
ROE	11.3%	14.0%	15.7%	14.6%	—
Total Debt	₹22,092 Cr	₹23,143 Cr	₹33,374 Cr	₹36,807 Cr	+18.5%
Free Cash Flow	-₹28,228 Cr	-₹9,244 Cr	₹16,856 Cr	₹18,361 Cr	—

🟢 Revenue has grown at 10.4% a year over 3 years.

🟢 PAT (Net Profit) has grown at 28.1% a year over 3 years.

🟢 EPS has grown at 24.8% a year over 3 years.

🟢 ROE has risen from 11.3% to 14.6% over 3 years (+3.4 pts).

🔴 Total Debt has grown at 18.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹28,228 Cr to ₹18,361 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9.92 L Cr

Total Liabilities

₹9.11 L Cr

Cash & Equivalents

₹65,700 Cr

Operating Cash Flow

₹18,815 Cr

Capex

-₹454 Cr

Shareholding (proxy)

Institutional Holding

17.2%

Insider Holding

76.5%

Corporate Actions

Next Earnings

15 Oct 2026

Dividend Rate

₹18.25

Ex-Dividend Date

10 Jun 2026

Analyst Consensus

Recommendations

14 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,009.5

+18.2% vs CMP

Target Range

₹910 – ₹1,100

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%

Recent News

1 positive2 mixed3 general

Indian Bank Share Price - Live NSE: INDIANB Stock Price & Chart

Upstox, 16 Oct

Indian Bank reports a Rs 1,388 crore gain from sale of NSE shares

The Economic Times, 16 Oct

HDFC Bank Limited (HDB) Stock Price, News, Quote & History

Yahoo! Finance Canada, 17 Oct

Indian Bank, South Indian Bank gain up to 5% from day's low post Q2 results

Business Standard, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

South Indian Bank Share Price: fresh 52-week high, Q2 view

Univest, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Q2 FY27 Bank Results: Indian Bank Profit Rises 15% to ₹3,462 Cr; KVB Jumps 37%, UCO Bank 27%

NiftyTrader, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation · Risk

MiddlingFinancial Health

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 3 tripwires holding · see Key things to watch ↑