Punjab National Bank

Financial Services — Banks - Regional · NSE

₹116.30+₹1.25 (+1.09%)

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 modest growth. 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Punjab National Bank provides various banking and financial products and services in India and internationally. The company operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments.

IndustryBanks - Regional

SectorFinancial Services

Employees1,03,184

Annual revenue₹62,620 Cr

How does it make money?

Turns over ₹62,620 Cr a year. Of every ₹100 of sales, about ₹29 reaches shareholders as profit. Each of its 1,03,184 employees supports ₹60.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹60.7 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?

15 analysts covering the stock expect revenue to grow about 10.8% and earnings to grow about 6.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.8%

Est. earnings growth+6.2%

Analysts15

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +33% while net margin moved +313% 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+33%

Margin effect+313%

DalalBaazaar Score

79/ 100

Good

Weighted across six categories. Every point is explained below.

• Shareholders fund 7.4% 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

87/ 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

5.9x

3Y Median

12.2x

40 monthly readings · mean 17.0x · range 6.1x–46.4x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 52% below its 3y median of 12.2x. 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 66% below the peer median of 17.0x.

vs. its own history

Cheap

12.2x median over 40 months · -52%

vs. sector peers

Cheap

17.0x median of 4 peers · -66%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 3.3% to 12.3%.
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?

Priced below its own history
The stock trades 52% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 66% 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?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 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 7% a year✓ 10.0% CAGR
Latest reported year was 7.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 12.2x✓ 5.9x 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

9 good · 2 neutral · 0 weak

Market Cap

₹1.34 L Cr

Large Cap

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

P/E (Trailing)

5.9x

Cheap

Cheap against the generic band

P/B Ratio

0.83x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹19.85

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

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

7.4%

Modest

Modest growth

Profit Growth (YoY)

15.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.58%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹24,011 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

6.6x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

ROA

1.1%

Weak

Assets generate little profit

Operating Margin

49.1%

Good

Healthy core-business profitability

Net Margin

38.8%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

115.2 / 115.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47,092 Cr	₹55,261 Cr	₹59,761 Cr	₹62,620 Cr	+10.0%
PAT (Net Profit)	₹3,348 Cr	₹9,107 Cr	₹18,480 Cr	₹18,393 Cr	+76.4%
EPS	₹3.04	₹8.27	₹16.42	₹16	+73.9%
ROE	3.3%	8.3%	13.9%	12.3%	—
Total Debt	₹70,149 Cr	₹72,586 Cr	₹71,999 Cr	₹86,268 Cr	+7.1%
Free Cash Flow	₹22,040 Cr	-₹29,114 Cr	₹20,474 Cr	₹24,011 Cr	+2.9%

🟢 Revenue has grown at 10.0% a year over 3 years.

🟢 PAT (Net Profit) has grown at 76.4% a year over 3 years.

🟢 EPS has grown at 73.9% a year over 3 years.

🟢 ROE has risen from 3.3% to 12.3% over 3 years (+9.0 pts).

🔴 Total Debt has grown at 7.1% a year over 3 years.

🟢 Free Cash Flow has grown at 2.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20.33 L Cr

Total Liabilities

₹18.83 L Cr

Cash & Equivalents

₹1.64 L Cr

Operating Cash Flow

₹25,635 Cr

Capex

-₹1,625 Cr

Shareholding (proxy)

Institutional Holding

18.8%

Insider Holding

70.1%

Corporate Actions

Next Earnings

16 Oct 2026

Dividend Rate

₹3

Ex-Dividend Date

12 Jun 2026

Analyst Consensus

Recommendations

11 Buy · 2 Hold · 5 Sell

Target Price (Mean)

₹124.22

+6.8% vs CMP

Target Range

₹92 – ₹145

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

2 positive2 mixed2 general

Is Now The Time To Put Punjab National Bank (NSE:PNB) On Your Watchlist?

Simply Wall Street, 18 Oct

150% Dividend: PSU Bank Rewards Investors With Bumper Payout, Stock Up 114% In 3 Yrs | How To Get Eligible?

Goodreturns, 15 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Punjab National Bank Share Price: Today’s Rise Explained

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Stocks to watch, Oct 16: YES Bank, Mankind Pharma, TechM, Wipro, DLF, Shoppers Stop, Punjab National Bank

Upstox, 16 Oct

Punjab National Bank Q2 results: Net profit rises 13% to ₹5,532 crore

Business Standard, 16 OctResults

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

Punjab National Bank: Buy, hold or sell post Q2 results? MOFSL shares target

Business Today, 17 OctResults

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

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 ↑