Bank of Maharashtra
NSE: MAHABANKBank of Maharashtra: A 30-second snapshot
Bank of Maharashtra (MAHABANK) is a public-sector bank trading at Rs 78.02, up 56.7% over the past 12 months and 17.8% over 3 months, with price sitting 26% above its 200-DMA of Rs 61.96. Q4 FY26 profit rose 35% YoY and a Rs 1.20 dividend was declared; the stock carries a PE of 8.6x and ROE of 22.66%, ranking first among the 6-stock Banking peer set on both quality score (72) and return on equity.
P/E
8.6
Forward P/E
—
ROE
+22.7%
Debt / Equity
—
Profit Margin
+49.3%
Div. Yield
+3.2%
5Y ROE > 15%
4/5
5Y FCF > 0
2/5
Quality
77/100
News
8 headlines · 7 positive · 1 negative
Bank of Maharashtra's ₹1,161 Crore Lease: Disputed Property, Alleged Forged Documents — and Silence - Part 2 - Moneylife
Moneylife
Bank of Maharashtra announces Rs 1.20 dividend as Q4 profit jumps 35% - Zee Business
Zee Business
Bank of Maharashtra Q4 Results: Stock jumps 4% on strong profit growth, better asset quality - CNBC TV18
CNBC TV18
Bank of Maharashtra shares jump after strong Q4 FY26 earnings; announces dividend - Business Today
Business Today
Broker's Call: Bank of Maharashtra (Buy) - BusinessLine
BusinessLine
Recent context
- ·Q4 FY26 results (reported ~2026-04-20) showed net profit up 35% YoY, prompting a 4% single-day price jump and a Rs 1.20 dividend announcement — the strongest positive catalyst in the 8-article news set.
- ·Moneylife (2026-04-30) published an investigation alleging a Rs 1,161 crore Bank of Maharashtra lease on a disputed property with alleged forged documentation; the sole negative headline in the set, it remains unaddressed publicly per available data.
- ·BusinessLine cited a named broker call on the stock (2026-04-21) with a constructive stance following the Q4 results; the stock has risen approximately 18% over the 3 months since.
Strengths
- +ROE of 22.66% is the highest in the peer set (peer range: 11–18%), and has been above 15% in 4 of the available years, indicating sustained above-peer capital efficiency.
- +PE of 8.6x is the lowest in the peer set — AXISBANK is the next cheapest at 14.7x, HDFCBANK at 17.2x, Bajaj Finance at 29.8x — placing MAHABANK at a material discount to private-bank peers on an earnings-multiple basis.
- +5-year revenue and earnings growth of 38.2% and 36.4% respectively indicate compounding at a pace materially above typical PSB averages; profit margin of 49.3% is high for the sector.
- +Price is above both the 50-DMA (Rs 72.05) and 200-DMA (Rs 61.96), RSI of 51.9 is in neutral territory, and the 52-week drawdown is only 9.2% from the high — no current technical stress.
Weaknesses
- −A Moneylife investigation (2026-04-30) alleges a Rs 1,161 crore lease involving a disputed property and forged documents; no bank rebuttal is on record in available data, leaving this governance risk open.
- −FCF has been positive in only 2 of the reported years; the debt trend is classified as rising, which in the context of a bank's balance-sheet expansion may signal growing provisioning requirements in a credit cycle downturn.
- −Analyst coverage is limited to 3 analysts with a mean rating of 1 on a 1–5 scale (lower = more constructive); such sparse coverage means consensus can shift significantly on a single analyst action.
- −As a public-sector bank, MAHABANK is subject to government ownership decisions, directed lending mandates, and capital infusion uncertainty — risks not fully captured in the quantitative peer comparisons above.
Open questions
- ?Does the 22.66% ROE reflect a structural improvement in credit underwriting and operating efficiency, or is it partly driven by a low-base recovery from the PSB NPA cycle that may mean-revert as the cycle matures?
- ?How does the bank's provisioning coverage ratio and gross/net NPA trend over the past 4 quarters compare with private-sector peers, and does the rising debt trend reflect productive loan-book growth or balance-sheet stress?
- ?What is the status of the Moneylife lease investigation — has the bank filed a clarification with exchanges or regulators, and what is the materiality of Rs 1,161 crore relative to the bank's total asset base and capital adequacy?
- ?Given that the peer set consists entirely of large-cap private banks and NBFCs, how does MAHABANK's valuation multiple compare with other mid-cap PSBs (e.g. Indian Bank, Central Bank) where the ownership and regulatory profile is more directly comparable?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| MAHABANK | Bank of MaharashtraYou're viewing | 8.6 | +22.7% | 72 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹78.02
SMA 50
₹72.05
SMA 200
₹61.96
RSI (14)
51.9 (neutral)
From 52w high
-9.2%
1Y return
+56.7%
3M return
+17.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumOne negative headline (Moneylife, 2026-04-30) alleges a ₹1,161 crore disputed-property lease with forged documents at Bank of Maharashtra; no public rebuttal from the bank is on record in available data, leaving the governance risk unresolved.
- mediumFCF-positive in only 2 of the reported years and debt trend is classified as rising; for a public-sector bank this raises questions about provisioning adequacy and asset-quality cycle sustainability.
- lowAnalyst coverage is very sparse at 3 analysts — mean rating 1 on a 1–5 scale (lower = more constructive); conclusions drawn from so few analysts should be treated with caution.
- lowPeer set comprises large-cap private banks and NBFCs (HDFC Bank, Axis Bank, Bajaj Finance, Bajaj Finserv, HDFC Life) which differ materially in ownership, regulatory treatment, and capital structure from a public-sector bank; all cross-peer valuations carry structural limits.
Cross-section contradictions
- MAHABANK ranks 1st of 6 peers on both ROE (22.66% vs peer range 11–18%) and quality score (72 vs peer median ~49), yet trades at PE of 8.6x — a 41% discount to the next-cheapest peer AXISBANK (PE 14.7x). The valuation gap may reflect PSB ownership concentration, government intervention risk, or liquidity premium, but the divergence between profitability rank and valuation multiple is notable.
- News sentiment is 7 positive vs 1 negative (8 total), with Q4 profit up 35% YoY and a dividend declared, yet the single negative headline raises a specific governance allegation (disputed lease, alleged forged documents). Strong reported earnings coexist with an unresolved accountability question.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days