Check Before You Invest : DCB Bank Ltd

Q: Which industry/sub-sector does DCB Bank Ltd belong to?

DCB Bank Ltd belongs to the BFSI sector, operating specifically within the Bank - Private segment.

Q: Is DCB Bank Ltd a good quality company?

DCB Bank Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is DCB Bank Ltd undervalued or overvalued?

DCB Bank Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 7.95, Historic Median: 8.02. Price to Book, Current: 0.95, Historic Median: 0.83. Price to Sales, Current: 0.79, Historic Median: 0.79. EV to EBITDA, Current: 9.59, Historic Median: 7.71

Q: Is DCB Bank Ltd a good buy now?

DCB Bank Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of DCB Bank Ltd?

DCB Bank Ltd Total Income growth is 23.73% for FY-2025, which is above its 5-year CAGR of 12.95%, indicating faster growth.

Q: Return on Assets of DCB Bank Ltd?

DCB Bank Ltd Return on Asset is 0.9%, which is in line with its 5-year historical median of 0.9%, indicating stable earnings on assets. Efficiency & Key Metrics. NIM (%), Current: 2.85, Historic Median: 3.21. PPOP (%), Current: 19.26, Historic Median: 9.53. RoA (%), Current: 0.9, Historic Median: 0.9

Q: Return on Equity (ROE) of DCB Bank Ltd?

DCB Bank Ltd Return on Equity is 12.1% for FY-2025, which is above its 5-year historical median of 11.5%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of DCB Bank Ltd?

DCB Bank Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 19.26% for FY-2025, which is above its 5-year median(9.53%), indicating increasing margins.

Q: Net Interest Margin of DCB Bank Ltd?

DCB Bank Ltd Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.85% for FY-2025, which is below its 5-year median( 3.21%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

DCB Bank Ltd return on invested capital (ROIC) is 28.13% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : DCB Bank Ltd

BSE: 532772 NSE: DCBBANK ISIN: INE503A01015

| Sector: BFSI | Industry: Bank - Private

Snapshot

Q.1 Which industry/sub-sector does DCB Bank Ltd belong to?

DCB Bank Ltd belongs to the BFSI sector, operating specifically within the Bank - Private segment.

Q.2 Is DCB Bank Ltd a good quality company?

DCB Bank Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is DCB Bank Ltd undervalued or overvalued?

DCB Bank Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	7.95	8.02
Price to Book	0.95	0.83
Price to Sales	0.79	0.79
EV to EBITDA	9.59	7.71

Q.4 Is DCB Bank Ltd a good buy now?

DCB Bank Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth and Cost-to-Income ratio.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of DCB Bank Ltd?

DCB Bank Ltd Total Income growth is 23.73% for FY-2025, which is above its 5-year CAGR of 12.95%, indicating faster growth.

Q.2 Return on Assets of DCB Bank Ltd?

DCB Bank Ltd Return on Asset is 0.9%, which is in line with its 5-year historical median of 0.9%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NIM (%)	2.85	3.21
PPOP (%)	19.26	9.53
RoA (%)	0.9	0.9

Q.3 Return on Equity (ROE) of DCB Bank Ltd?

DCB Bank Ltd Return on Equity is 12.1% for FY-2025, which is above its 5-year historical median of 11.5%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of DCB Bank Ltd?

DCB Bank Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 19.26% for FY-2025, which is above its 5-year median(9.53%), indicating increasing margins.

Q.5 Net Interest Margin of DCB Bank Ltd?

DCB Bank Ltd Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.85% for FY-2025, which is below its 5-year median( 3.21%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

DCB Bank Ltd return on invested capital (ROIC) is 28.13% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of DCB Bank Ltd?

DCB Bank Ltd Total Asset growth is 21.85% for FY-2025, which is above its 5-year CAGR of 14.81%, indicating faster growth.

Q.8 Cost to Income ratio of DCB Bank Ltd?

DCB Bank Ltd Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 63.7% for FY-2025, is in line with its historical 5-year median of 63%, indicating stable cost management.

C: How strong is the bank’s capital position and asset quality?

Q.9 Capital Adequacy ratio of DCB Bank Ltd?

DCB Bank Ltd Capital Adequacy ratio (CAR) is 16.8% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.10 Asset Quality of DCB Bank Ltd?

DCB Bank Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 2.99% for FY-2025, which is below its 5-year median 3.23%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 1.12% which is in line with its 5-year median( 1.12%), indicating stable asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of DCB Bank Ltd?

Q.1 Promoter shareholding and pledge status of DCB Bank Ltd?

Promoters hold 16.23% of the DCB Bank Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does DCB Bank Ltd performance compare with that of its Peers?

Q.1 AUM Growth of DCB Bank Ltd vs Industry Peers?

DCB Bank Ltd AUM CAGR is 14.81%, compared to the 5-year industry median CAGR of 13.65%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of DCB Bank Ltd vs industry peers

DCB Bank Ltd profit metrics are in line with the industry median level of 7.55%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM (%)	2.85	3.73
PPOP (%)	19.26	17.81
RoA (%)	0.9	1.1

Q.3 Operating efficiency of DCB Bank Ltd vs industry peers?

DCB Bank Ltd Cost to Income (59.15) is in line with the industry median of (61.3); while the current ROE (11.5) are below than the 5-year average Industry ROE (12.2). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM (%)	2.85	3.73
PPOP (%)	19.26	17.81
RoA (%)	0.9	1.1
Cost to Income (%)	63.7	61.3
ROE (%)	12.1	12.2

Valuation & price assessment

Q.1 Stock return of DCB Bank Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	7%	14.8%	17.4%	36.2%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	7.95	8.02	13.38
Price to Book	0.95	0.83	1.38
Price to Sales	0.79	0.79	1.77
EV to EBITDA	9.59	7.71	7.70

Q.3 Valuation ratios of DCB Bank Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 0.95 is higher than its historical median of 0.83, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : DCB Bank Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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