IDBI Bank (IDBI)

FairStock Score: 75/100 — STEADY

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

Key Financials

Strengths

• Reasonable P/E valuation at 13.4
• Provides dividend income with 1.8% yield
• Large market cap of Rs 1.2L crores indicating established presence

Concerns

• Declining sales growth of -9.4%
• Very low profit growth at 0.3%
• Below-par ROCE of 6.8% for banking sector

AI Analysis

IDBI Bank is a Slow Grower company — trading at Rs 116 with a market capitalization of Rs 1.2 lakh crores. As a private sector bank, the data indicates this institution faces significant operational challenges. The company's sales growth shows a concerning decline of 9.4%, while profit growth remains nearly flat at just 0.3%. For income-focused investors, IDBI Bank offers a dividend yield of 1.8%, though this modest payout raises questions about sustainability given the weak underlying performance. The bank's return on capital employed stands at 6.8%, which analysis suggests is below industry standards for efficient capital utilization. With a price-to-earnings ratio of 13.4, the stock appears reasonably valued on paper, but the DhanIQ score of 3 out of 10 reflects the company's weak fundamentals. The banking sector requires strong operational metrics and consistent growth to maintain dividend payments over time. Investors may consider that while the current dividend yield provides some income, the declining sales and minimal profit growth indicate potential challenges in maintaining this payout in future quarters. The combination of shrinking revenues and stagnant profitability suggests investors should carefully evaluate whether this dividend stream can remain reliable.

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