Financial Services · Banks - Regional · NSE · India
₹837.15-2.17%
Market cap ₹1.13TNext earnings 2026-10-15Updated Oct 23, 2026
Our verdict
Trades 32% below our fair value
Price
₹837.15
Model fair valueConfidence: medium
₹1238
Only one of our models could value this stock with confidence, so use it as a guide.
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Valued as a bank: P/E comparison and Dividend discount.
ACCE opinionIndian Bank (INDIANB.NS)
Fair value
Not available
ACCE price target
₹913
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ₹837 at the close on 23 Oct 2026, 12:00 CEST.
Models: Dividend discount and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
69
out of 100
P/E
8.7x
forward 7.3x
1-year return
+1.3%
Dividend yield
2.13%
Indian Bank in four questions
Plain answers, details below
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Overview
ACCE thesis
Indian Bank is a state-owned lender that runs a large retail deposit and lending franchise across India, with core products in savings and current accounts, home and personal loans, and MSME credit. Its footprint and government ownership give it a deep low-cost deposit base, which is the structural advantage here. Revenue grew 14.4% over the last year and return on equity is 16.1%, a combination that is hard to find among Indian public-sector banks. The stock trades at 8.7 times trailing and 7.5 times forward earnings, a discount that deserves a look given that growth. The open question for a deeper review is whether asset quality and margins hold up through the next credit cycle, since the headline multiple alone does not answer that.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Thin earnings beat miss
Q3 2026 EPS came in 0.4% below consensus, a small miss but the first thing to watch for a bank whose earnings growth is already at +14.0% YoY.
moderate
Heavy insider ownership
Insiders hold 76.5% of shares, so free float is small and a single large holder selling could move the price more than the 0.07M in recent disclosed sales suggests.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Revenue grew 14.4% year over year, ahead of its 10.5% average annual pace over the last five years.
The stock trades at 8.7 times trailing earnings and 7.5 times forward earnings, a low multiple for a lender with a 16.1% return on equity.
Analysts' mean price target of INR 1010.75 sits 18.1% above the current share price.
Why it could disappoint
Earnings per share came in at 25.70 against 25.80 expected, a small miss in the latest quarter.
The share price of ₹837.15 is 8.3% below the ACCE price target of ₹913.00, so our own valuation sees less room than the bulls suggest.
Lending to state-owned borrowers carries asset quality risk, which could hit profits even with a 36.4% net margin today.
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Walk me through this stock
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Valuation
INVESTOR
Where INDIANB.NS's valuation models land
Price
₹837.15
Model fair valueConfidence: medium
₹1238
Model
Fair value
Upside
Dividend discount
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores
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Analysts
Wall Street consensus
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Analyst intelligence INVESTOR FEATURE
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+Price-target low / average / high vs the current price, with implied upside
+Forward revenue and EPS consensus by fiscal year
+ACCE fair-value models lined up against the Street
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