Mehabe score: 2 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
Bank of India is an India-based bank. The Bank’s segments include Treasury Operations, Wholesale Banking and Retail Banking. The Treasury operations segment includes the entire investment portfolio, which is dealing in government and other securities, money market operations and foreign exchange operations.(Source : Company Web-site )Site:BANKINDIAMain Symbol:BANKINDIA
Stock trades at 60.4, below its 50dma 62.25 and below its 200dma 64.78. The stock remains bearish on technicals
The 52 week high is at 101.45 and the 52week low is at 38.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.53 times its book value
– has delivered good profit growth of 18.49% CAGR over last 5 years
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -0.60% over past five years.
– has a low return on equity of -4.96% for last 3 years.
-Contingent liabilities of Rs.478708.14 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.8152.52 Cr.
Competition
– The industry trades at a mean P/E of 11.4x. I O B trades at the industry’s max P/E of 31.96x. BANKINDIA trades at a P/E of 12.6x
– Industry’s mean G-Factor is 4.9 while the mean Piotski score is 8.0. BANKINDIA has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 12.7%. The max 1- month return was given by Union Bank (I): a return of 27.98 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 9580.0 cr compared to Rs 10852.0 cr for period ended Sep 2020, a fall of 11.7%
Operating Profits reported at Rs 3939.0 cr for period ended Sep 2021 vis-vis 4715.0 for period ended Sep 2020 .
Operating Margins contracted -233.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 2.61 compared to Rs 1.99 for previous quarter ended Jun 2021 and Rs 1.66 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 38670.0 cr for period ended TTM vis-vis sales of Rs 40854.0 cr for the period ended Mar 2021, a fall of 5.6%. The 3 year sales cagr stood at -1.9%.
Operating margins shrank to -4613.0% for period ended TTM vis-vis -3838.0% for period ended Mar 2021, contraction of 77500.0 bps.
Net Profit reported at Rs 2502.0 cr for period ended TTM vis-vis sales of Rs 2083.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 37868.0 cr for period ended Mar 2021 vis-vis Rs -4827.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to -5.0% over the last 3 Years. – The stock has given a return of 55% on a 1 Year basis vis-vis a return of -11% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 184% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.96% vis-vis 0.38% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 5.87% vis-vis 4.65% for Jun 2021
Conclusion
– Stock is trading at 0.53 times its book value
– has delivered good profit growth of 18.49% CAGR over last 5 years – has low interest coverage ratio.
-The company has delivered a poor sales growth of -0.60% over past five years.
– has a low return on equity of -4.96% for last 3 years.
-Contingent liabilities of Rs.478708.14 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.8152.52 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 62.25 and is trading at 60.4. Shows a near term lack of buying interest.
