Check Before You Invest : Bank Of Maharashtra

BSE: 532525 NSE: MAHABANK ISIN: INE457A01014

| Sector: BFSI | Industry: Bank - Public

Snapshot

Q.1 Which industry/sub-sector does Bank Of Maharashtra belong to?

Bank Of Maharashtra belongs to the BFSI sector, operating specifically within the Bank - Public segment.

Q.2 Is Bank Of Maharashtra a good quality company?

Bank Of Maharashtra is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Bank Of Maharashtra undervalued or overvalued?

Bank Of Maharashtra appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Bank Of Maharashtra a good buy now?

Bank Of Maharashtra is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Bank Of Maharashtra?

Bank Of Maharashtra Total Income growth is 20.9% for FY-2025, which is above its 5-year CAGR of 16.66%, indicating faster growth.

Q.2 Return on Assets of Bank Of Maharashtra?

Bank Of Maharashtra Return on Asset is 1.6%, which is above its 5-year historical median of 1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NIM%	3.24	2.99
PPOP%	16.33	23.31
RoA%	1.6	1

Q.3 Return on Equity (ROE) of Bank Of Maharashtra?

Bank Of Maharashtra Return on Equity is 24.6% for FY-2025, which is above its 5-year historical median of 19.7%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Bank Of Maharashtra?

Bank Of Maharashtra Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 16.33% for FY-2025, which is below its 5-year median(23.31%), indicating decreasing margins.

Q.5 Net Interest Margin of Bank Of Maharashtra?

Bank Of Maharashtra Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 3.24% for FY-2025, which is above its 5-year median( 2.99%), indicating increasing margins.

Q.6 Total Asset growth of Bank Of Maharashtra?

Bank Of Maharashtra Total Asset growth is 20.19% for FY-2025, which is above its 5-year CAGR of 16.93%, indicating faster growth.

Q.7 Cost to Income ratio of Bank Of Maharashtra?

Bank Of Maharashtra Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 38.4% for FY-2025, is lower its historical 5-year median of 39.1%, indicating deteriorated cost management.

Q.8 Capital Adequacy ratio of Bank Of Maharashtra?

Bank Of Maharashtra Capital Adequacy ratio (CAR) is 20.5% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.9 Asset Quality of Bank Of Maharashtra?

Bank Of Maharashtra Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 1.74% for FY-2025, which is below its 5-year median 2.47%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.18% which is below its 5-year median( 0.25%), indicating improving asset quality.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bank Of Maharashtra?

Promoters hold 73.60% of the Bank Of Maharashtra, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Bank Of Maharashtra vs Industry Peers?

Bank Of Maharashtra AUM CAGR is 16.93%, compared to the 5-year industry median CAGR of 9.37%, indicating faster growth and gaining its market share.

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

Bank Of Maharashtra profit metrics are above the industry median level of 6.24%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM%	3.24	2.73
PPOP%	16.33	15.38
RoA%	1.6	0.6

Q.3 Operating efficiency of Bank Of Maharashtra vs industry peers?

Bank Of Maharashtra Cost to Income (49.7) is below the industry median of (50.2); while the current ROE (19.7) are above than the 5-year average Industry ROE (8.7). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM%	3.24	2.73
PPOP%	16.33	15.38
RoA%	1.6	0.6
Cost to Income%	38.4	50.2
ROE%	24.6	8.7

Valuation & price assessment

Q.1 Stock return of Bank Of Maharashtra over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 10.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	10.3%	26.6%	37.8%	54.9%

Q.3 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	8.6	9.22	10.62
Price to Book	1.93	1.50	1.12
Price to Sales	2.06	1.57	1.15
EV to EBITDA	4.27	3.05	5.03

Q.4 Valuation ratios of Bank Of Maharashtravs historical and industry averages?

The current Price to book ratio (P/B) 1.93% is higher than its historical median of 1.50%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Bank Of Maharashtra return on invested capital (ROIC) is 37.17% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

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