Punjab & Sind Bank

Financial Services — Banks - Regional · NSE

₹21.45+₹0.21 (+0.99%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Punjab & Sind Bank provides various banking and financial products and services in India. It offers deposit products, including saving accounts, current accounts, salary, fixed deposits.

IndustryBanks - Regional

SectorFinancial Services

Annual revenue₹5,632 Cr

How does it make money?

Turns over ₹5,632 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit.

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 has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +45% while net margin moved -31% 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+45%

Margin effect-31%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 13.2% is steady
✗ Profit CAGR of only 0.2%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

75/ 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

11.0x

3Y Median

23.9x

40 monthly readings · mean 29.4x · range 11.4x–67.7x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 54% below its 3y median of 23.9x. 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 35% below the peer median of 17.0x.

vs. its own history

Cheap

23.9x median over 40 months · -54%

vs. sector peers

Cheap

17.0x median of 4 peers · -35%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

48.77

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?

Priced below its own history
The stock trades 54% 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 35% 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?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1Revenue growth stays above 10% a year✓ 13.2% CAGR
Latest reported year was 10.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 8%✓ 9.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 23.9x✓ 11.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹15,220 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.0x

Cheap

Cheap against the generic band

P/B Ratio

1.03x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.95

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

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

Debt/Equity

0.99x

Moderate

Moderate leverage

Revenue Growth (YoY)

10.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.82%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹2,134 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

0.8%

Weak

Assets generate little profit

Operating Margin

35.4%

Good

Healthy core-business profitability

Net Margin

28.5%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

21.4 / 22.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,886 Cr	₹3,709 Cr	₹5,381 Cr	₹5,632 Cr	+13.2%
PAT (Net Profit)	₹1,313 Cr	₹595 Cr	₹1,016 Cr	₹1,322 Cr	+0.2%
EPS	₹1.94	₹0.88	₹1.5	₹1.86	-1.4%
ROE	8.7%	3.8%	7.6%	9.4%	—
Total Debt	₹9,018 Cr	₹9,171 Cr	₹11,880 Cr	₹13,952 Cr	+15.7%
Free Cash Flow	₹1,338 Cr	₹1,517 Cr	-₹2,461 Cr	-₹2,134 Cr	—

🟢 Revenue has grown at 13.2% a year over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.2% a year).

🟡 EPS has been broadly flat over 3 years (-1.4% a year).

🟡 ROE has held roughly flat at 9.4% over 3 years.

🔴 Total Debt has grown at 15.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1,338 Cr to -₹2,134 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.79 L Cr

Total Liabilities

₹1.65 L Cr

Cash & Equivalents

₹7,689 Cr

Operating Cash Flow

-₹1,893 Cr

Capex

-₹241 Cr

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

93.8%

Corporate Actions

Dividend Rate

₹0.39

Ex-Dividend Date

21 Jul 2026

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

3 mixed3 general

Punjab & Sind Bank Hopes To Surpass Rs 1,000 Crore Recovery Target in FY27

HDFC Sky, 23 Jul

Punjab & Sind Bank Share Price Target 2026: Bull Case Rs 30.00

Univest, 29 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

NIFTY PSU Bank Share Price | NIFTY PSU Bank Index | NIFTY PSU Bank Today

Livemint, 16 Oct

Why are investors buying Punjab & Sind Bank shares today? stock up 5%

Business Standard, 02 JanPrice 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.

Punjab & Sind Bank plans Rs 3,000-cr share sale this fiscal

The Economic Times, 28 Apr

Punjab & Sind Bank shares fall nearly 3% post-Q4 earnings; here is how the lender fared

Upstox, 27 AprPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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 · Valuation

MiddlingFinancial Health · Growth · Profitability · Risk

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 ↑