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Indian Bank (INDIANB) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.1T

IB Indian Bank INDIANB · NSE
Price₹877.90
Fair Value₹1,130
Upside+28.7%
Quality58/100
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Healthy Growth
Highly profitable · 36.4% net margin
Moderate debt · generates free cash flow
Ranks above peers (9/14)
Wide moat 68/100
Evidence: High Range ₹847.21 – ₹1,412 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Share price +11.7% over the past month.

A solid business, screening 29% undervalued on our models.

What matters now

  • Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹970.87 ₹84.35 Fair Value ₹1,130 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ₹84.35 – ₹970.87 · fair‑value band ₹847.21 – ₹1,412 · the ₹877.90 price screens below the ₹1,130 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Indian Bank (INDIANB) currently trades at ₹877.90, while our model-based Fair Value estimate is ₹1,130, implying the stock looks roughly 28.7% undervalued today. We read business quality at 58/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Indian Bank generated revenue of ₹343B at a net margin of 34.2%. Revenue grew 1.5% year over year. It earns a return on equity of 15.4%. The balance sheet holds a net cash position of ₹189B. Fundamentals as of Jul 16, 2026

Our scenario range runs from ₹847.21 (bear case) to ₹1,412 (bull case); at ₹877.90, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 12% below its 52-week high and 45% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 29%, INDIANB screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹3,719 ₹6,975 ₹13,141 80
Residual Income ₹603.65 ₹809.66 ₹2,533 76
Rev-Margin DCF ₹1,965 ₹3,050 ₹4,528 74
All 26 models by family
DCF Models
FCF DCF ₹3,782 ₹7,290 ₹14,532 38
Owner Earnings ₹1,464 ₹2,765 ₹5,296 31
5Y Revenue Exit ₹1,965 ₹3,051 ₹4,494 39
5Y EBITDA Exit ₹2,039 ₹3,211 ₹4,668 41
5Y P/E Exit ₹2,108 ₹3,359 ₹4,803 38
10Y Revenue Exit ₹2,469 ₹3,756 ₹5,709 36
10Y EBITDA Exit ₹2,559 ₹3,879 ₹5,866 37
10Y P/E Exit ₹2,606 ₹3,994 ₹5,987 35
Earnings-Based
Graham-Dodd ₹590.88 ₹3,213 ₹4,456 54
Lynch FV ₹891.70 ₹1,274 ₹1,656 50
PEG = 1.0 ₹891.70 ₹1,274 ₹1,656 46
EPV ₹1,050 ₹1,204 ₹1,341 59
Dividend Discount
Gordon GGM ₹156.31 ₹341.25 ₹574.17 70
DDM Multi-Stage ₹156.31 ₹279.54 ₹355.64 61
Multiples
P/E Multiple ₹1,303 ₹1,738 ₹2,172 63
P/S Multiple ₹1,090 ₹1,454 ₹1,817 58
P/B Multiple ₹1,108 ₹1,477 ₹1,846 55
EV/EBIT ₹1,781 ₹2,315 ₹2,849 53
EV/EBITDA ₹1,380 ₹1,780 ₹2,181 54
EV/Revenue ₹1,197 ₹1,633 ₹2,069 43
Asset-Based
NCAV (Graham) ₹297.12 ₹398.15 ₹594.25 50
Growth DCF
Growth DCF ₹3,719 ₹6,975 ₹13,141 80
Rev-Margin DCF ₹1,965 ₹3,050 ₹4,528 74
Economic Profit
Residual Income ₹603.65 ₹809.66 ₹2,533 76
ROIC Compounder ₹1,210 ₹1,632 ₹2,210 72
Growth Earnings
Growth-Adj P/E ₹1,271 ₹1,816 ₹2,361 68

Widest divergence: DCF Models (₹3,359) versus Dividend Discount (₹279.54). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹343B
Revenue growth (YoY) +1.5%
Net margin 34.2%
Return on equity 15.4%
Free cash flow ₹333B FY2026
P/E ratio 9.7
More key figures
Operating margin 46.9%
EPS (TTM) ₹86.90
Dividend yield 2.2%
EPS growth (YoY) +6.4%
Net cash ₹189B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 53 · Market factors (momentum, volatility) 68

Profitability 31
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 68
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Indian Bank provides various banking products and services. It offers deposit products, including savings bank and current accounts, term deposits, and non-resident Indian (NRI) accounts.

Full company description

Indian Bank provides various banking products and services. It offers deposit products, including savings bank and current accounts, term deposits, and non-resident Indian (NRI) accounts. The company also provides agriculture, MSME, corporate, online, home, mortgage, vehicle, personal, educational, and jewel loans; supply chain finance; 59 minutes loans; loan/OD against deposits, NSC/KVP/ relief bonds of RBI/LIC policies; and other retail/personal loans. In addition, it offers digital products, including IndOASIS, internet and SMS banking, debit and credit cards, national common mobility cards, prepaid card, mutual funds, IPO, demat, and trading services; point of sale systems; online collection products; cash management services; and other products, services, and schemes. The company operates through multiple branches in India and overseas; as well as ATMs and BNAs. Indian Bank was incorporated in 1907 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Indian Bank reported revenue of ₹783B in FY2026 versus ₹463B in FY2022, a compound +14.1%/yr. Reported net income was ₹117B in FY2026, compounding +29.7%/yr from FY2022.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹783B
Latest YoY
+8.7%
Avg. growth/yr (3Y)
+14.1%
Avg. growth/yr (5Y)
+11.6%
Avg. growth/yr (22Y)
+15.3%
Revenue +14.1%/yr
FY22 ₹463B
FY23 ₹528B
FY24 ₹642B
FY25 ₹720B
FY26 ₹783B
Net income +29.7%/yr
FY22 ₹41.4B
FY23 ₹55.7B
FY24 ₹84.2B
FY25 ₹113B
FY26 ₹117B

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Cite: Fair Value Calculator (2026). "Indian Bank Fair Value". https://www.fairvalue-calculator.com/stock/INDIANB

Peer Group

Banks - Regional · 1082 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 58 · Below median
Fair Value upside +29% · Above median
Return on equity (TTM) 16% · Top 25%
Return on assets 1% · Top 25%
Net margin (TTM) 36% · Above median
Operating margin (TTM) 48% · Above median
Revenue growth 10% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.52× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 9.2× · Cheaper than median
P/B 1.42× · Pricier than 75% of peers
P/S (TTM) 3.23× · Pricier than median
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 5.5× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 72 · sector 39
FUTURE 52 · sector 44
PAST 65 · sector 41
HEALTH 74 · sector 85
DIVIDEND 0 · sector 49

Insider activity: 20/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Indian Bank (INDIANB) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ₹1,130 versus a price of ₹877.90, about +29% (undervalued).
What is the fair value of INDIANB?
Our model-based fair value for Indian Bank is ₹1,130 (as of Jul 16, 2026), built from audited fundamentals. The current price is ₹877.90.
What is the quality score of INDIANB?
Indian Bank has a Quality Score of 58/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Indian Bank (INDIANB)?
Indian Bank reported trailing-twelve-month revenue of about ₹343B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of INDIANB?
The net profit margin of Indian Bank is about 34.2%, meaning it keeps roughly 34.2% of revenue as net income. Based on the latest reported figures.
Does Indian Bank pay a dividend?
Indian Bank currently shows a dividend yield of about 2.18% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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