Bank of Baroda (BANKBARODA)

FairStock Score: 66/100 — STEADY

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me look at Bank of Baroda the way Graham would: as a business. I am offered a share for ₹276, while the book value stands at ₹283.30. That means I am buying a rupee of tangible equity at 97 paise, with a P/B below 1 and a P/E of 8.55. The Graham Number of ₹489.88 suggests a 34% margin of safety, and even my computed DCF says ₹691.99. But I must be careful: banking is a leveraged business, so debt/equity of 11.14 is normal, not a red flag. Altman Z and EV/EBITDA are not tools for banks. The moat comes from a 63.97% government promoter holding, a banking license, and a low-cost deposit franchise. Return on equity at 13.29% is respectable, and Piotroski F-Score 8/9 tells me the balance sheet is improving. Sales grew 28.97%, but profit fell 4.72%; the latest quarter still earned ₹5,501 Cr on revenue of ₹33,600 Cr. Free cash flow of ₹28,398 Cr gives cushion. Dividend yield 2.59% lets me wait patiently. I won't be enamored by glamour; this is a steady, slightly dull asset play on a solid public sector bank. The test is credit quality and whether the profit decline is transient. If the bank can keep ROE in low teens and avoid bad loans, the discount to book should close. If not, book value can erode. At 8.55 times earnings, I am paid to wait. Patience, and discipline.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer