The South Indian Bank Limited

Financial Services — Banks - Regional · NSE

₹51.24−₹0.24 (−0.47%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, 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, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

The South Indian Bank Limited provides various banking products and services in India. It operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments.

IndustryBanks - Regional

SectorFinancial Services

Employees8,998

Annual revenue₹5,200 Cr

How does it make money?

Turns over ₹5,200 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit. Each of its 8,998 employees supports ₹57.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹57.8 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?

5 analysts covering the stock expect revenue to grow about 12.2% and earnings to grow about 11.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.2%

Est. earnings growth+11.6%

Analysts5

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +31% while net margin moved +43% 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+31%

Margin effect+43%

DalalBaazaar Score

75/ 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

77/ 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

8.5x

3Y Median

7.7x

40 monthly readings · mean 7.1x · range 4.5x–9.9x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 11% above its 3y median of 7.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 50% below the peer median of 17.0x.

vs. its own history

Fair

7.7x median over 40 months · +11%

vs. sector peers

Cheap

17.0x median of 4 peers · -50%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.36

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

1 item require attention · 1 watch

🟡Low reported insider holdingOwnership
Reported insider holding is 4.3%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 50% 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

1Return on equity stays above 12%✓ 13.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 7% a year✓ 9.5% 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 7.7x✓ 8.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹13,422 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.5x

Cheap

Cheap against the generic band

P/B Ratio

1.11x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.04

Profitable

Profitable on a per-share basis

ROE

13.9%

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

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

13.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.88%

Modest

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

Free Cash Flow

₹3,766 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

7.1x

Improving

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

ROA

1.1%

Weak

Assets generate little profit

Operating Margin

40.3%

Good

Healthy core-business profitability

Net Margin

29.9%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

94%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

48.3 / 46.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,961 Cr	₹4,849 Cr	₹4,975 Cr	₹5,200 Cr	+9.5%
PAT (Net Profit)	₹775 Cr	₹1,070 Cr	₹1,303 Cr	₹1,456 Cr	+23.4%
EPS	₹3.49	₹5.09	₹4.98	₹5.55	+16.7%
ROE	11.6%	12.1%	12.9%	12.8%	—
Total Debt	₹6,719 Cr	₹3,912 Cr	₹2,600 Cr	₹3,427 Cr	-20.1%
Free Cash Flow	-₹7,374 Cr	₹6,893 Cr	-₹2,511 Cr	₹3,766 Cr	—

🟢 Revenue has grown at 9.5% a year over 3 years.

🟢 PAT (Net Profit) has grown at 23.4% a year over 3 years.

🟢 EPS has grown at 16.7% a year over 3 years.

🟢 ROE has risen from 11.6% to 12.8% over 3 years (+1.1 pts).

🟢 Total Debt has shrunk at 20.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7,374 Cr to ₹3,766 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.42 L Cr

Total Liabilities

₹1.30 L Cr

Cash & Equivalents

₹9,100 Cr

Operating Cash Flow

₹3,907 Cr

Capex

-₹141 Cr

Shareholding (proxy)

Institutional Holding

29.9%

Insider Holding

4.3%

Corporate Actions

Dividend Rate

₹0.45

Ex-Dividend Date

13 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹49

-4.4% vs CMP

Target Range

₹25 – ₹73

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 mixed4 general

What South Indian Bank Buyers Were Betting On

Simply Wall Street, 16 Oct

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.

The South Indian Bank Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

South Indian Bank revises MCLR rates effective Oct 20, 2026

scanx.trade, 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.

Stock Radar: South Indian Bank stock takes support above 20-DMA after hitting record highs in September; t

The Economic Times, 12 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health · 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 ↑