Established in 1935, the Bank of Maharashtra (BOM) stands as a pillar of the Indian financial landscape, serving over 30 million customers across its 2263 branches. Headquartered in Pune, BOM boasts a rich legacy, a robust network, and a commitment to empowering communities.
With the Indian banking sector poised for significant growth, investors are keenly interested in BOM’s future trajectory. This analysis delves into the bank’s potential share price targets across a significant timeframe (2024-2030), offering valuable insights for informed investment decisions.
Table of Contents
Bank of Maharashtra Company Overview
Historical Evolution
Bank of Maharashtra was incorporated on 16th September 1935 under the Indian Companies Act with an initial capital of Rs 10 Lakh. It became a wholly government owned entity in 1969 through nationalization of banks in India. Over the decades, the bank has emerged as a leading financial institution in the western region of India.
Key milestones in the bank’s growth journey include crossing business mix of Rs 1000 crore in 1984, reaching 1000th branch in 2006, and implementing core banking solution in 2010. In recent years, BoM has focused on increasing retail lending, expanding digital services and improving asset quality.
Financial Indicators
Some key financial indicators for BoM are:
- Ticker symbol: MAHABANK
- Sector: Bank – Public
- Market cap: ₹43,217.62 Cr
- Share price: ₹61.03
- P/E ratio: 11.75
- P/B ratio: 2.4
- Dividend yield: 2.13%
Key Ratios
- ROE: 19.68% (1-year)
- ROA: 1.04% (1-year)
- Net NPA: 0.25% (1-year)
- NIM: 2.99% (1-year)
- CAR: 18.14%
- Cost of liabilities: 3.33%
- PEG Ratio: 0.09
- Advances Growth: 30.53% (3-year)
Quarterly Results (Latest Quarter):
- Net Profit: ₹1,035.51 Cr.
- EPS: ₹3.87
- NPAT Margin: 20.02%
Balance Sheet (Latest Year):
- Deposits: ₹2,34,082.68 Cr.
- Advances: ₹1,71,220.67 Cr.
- Total Assets: ₹2,67,651.39 Cr.
Recent News:
- Bank of Maharashtra reported a 34% rise in Q3 consolidated net profit.
- The bank raised Rs 259 crore through bonds.
Bank of Maharashtra Share historical movement
Recent Developments
Some major recent developments in BoM are:
- Home, Auto, Education & SHG Expo (November 8-12, 2023): Held in Pune to showcase loan and investment options.
- Video KYC: Launched for opening online savings accounts.
- Nakshatra: Unveiled a private cloud platform for improved digital infrastructure.
- Digital Banking Units: Operationalized in Satara, Aurangabad, and Pune.
- Social Responsibility: Adopted 75 villages for integrated development
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Role in the Banking Sector
Core Business Model
As a full-service public sector bank, BoM’s core business model involves:
- Mobilizing low-cost Current Account Savings Account (CASA) deposits
- Providing loans to retail, MSME and corporate clients across India
- Offering fee and commission based services like funds transfer, bank guarantees and more
- Generating interest income from investments in government securities
- Maintaining Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) as mandated by RBI
Banking Services Portfolio
BoM provides an array of banking products and services:
Retail Banking – Savings/current accounts, fixed/recurring deposits, home loans, vehicle loans, personal loans, debit/credit cards, locker facility, NRI services etc.
MSME Banking – CGTMSE loans, working capital finance, equipment loans, business loans, trade finance etc.
Corporate Banking – Working capital loans, term loans, trade finance, transaction banking, treasury solutions etc.
Digital Banking – Internet banking, mobile banking, UPI, IMPS, RTGS, NEFT, missed call service etc.
Financial Inclusion – Zero balance accounts, micro loans, Atal Pension Yojana, PMJDY, insurance, micro ATMs etc.
Bank of Maharashtra Share Price Analysis
Current Share Price Dynamics
- Strong performer: Up 167.76% from its 52-week low and currently trading above most moving averages.
- Technical analysis: Moderately strong with RSI and MFI in the mid-range, MACD above its center line but below signal line, and Beta indicating low volatility.
- Trading below its pivot point: Currently at ₹61.05, below the pivot of ₹61.48.
- Recent performance: Down 0.60% (-0.97%) today, but up 9.95% (19.47%) in the past month.
Key Points:
- Price: ₹61.05
- Change: -0.60 (-0.97%)
- 52-week range: ₹22.80 – ₹69.45
- Market cap: ₹43,217.62 Cr
- Volume: 29.3M (NSE+BSE combined)
- Delivery volume: 32.76% (higher than weekly average)
- Technical analysis: Moderately strong with some mixed signals
Technical Analysis
Technical indicators for BoM are:
Overall: Bank of Maharashtra (MAHABANK) is currently in a moderately bullish trend, with a 167.76% gain from its 52-week low and currently trading above its key moving averages. However, it is worth noting that the stock is down slightly today and is trading below its pivot point.
Key Technical Indicators:
- Trendlyne Momentum Score: 65.58 (moderately strong)
- RSI: 58.4 (mid-range)
- MFI: 55.8 (mid-range)
- MACD: Above center line, but below signal line (neutral)
- ADX: 37.8 (indicates strong trend)
- ROC: Positive across all timeframes (indicates momentum)
- Delivery Volume: 32.76% (higher than average)
- Moving Averages: Trading above 7 out of 8 SMAs (bullish)
- Oscillators: Trading below 4 out of 9 oscillators in bearish zone (mixed signal)
- Beta: 1.6 (relatively low volatility)
Shareholding Pattern of Bank of Maharashtra
| Shareholder | Percentage |
|---|---|
| Promoters | 86.46 |
| Domestic institutional investors | 4.72 |
| Foreign Institutional Investors | 0.67 |
| Public & Other | 7.53 |
| Corporate Holding | 0.63 |
Annual Results and Financial Performance
In-Depth Analysis of Recent Annual Results
| Metric | 2023 | 2022 | Change YoY |
|---|---|---|---|
| Revenue (Cr.) | 15,898.46 | 14,280.53 | 11.41% |
| Advances Growth (%) | 30.53 | 25.38 | 5.15% |
| CASA Ratio (%) | 53.38 | 52.12 | 1.26% |
| Cost of Liabilities (%) | 3.33 | 3.44 | -3.17% |
| ROA (%) | 1.04 | 1.30 | -19.23% |
| Gross NPA (%) | 2.47 | 2.94 | -16.02% |
| Net NPA (%) | 0.25 | 0.47 | -46.81% |
| Other Income (Cr.) | 2,280.27 | 2,652.48 | -13.99% |
| Capital Adequacy Ratio (%) | 18.14 | 17.23 | 5.34% |
| EPS (Rs.) | 3.87 | 1.71 | 125.96% |
| Net Profit (Cr.) | 2,602.04 | 1,151.54 | 125.96% |
Key Ratios:
- ROE: 19.68% (1 Year), 11.65% (3 Year), -6.41% (5 Year)
- ROA: 1.04% (1 Year), 0.63% (3 Year), -0.17% (5 Year)
- Net NPA: 0.25% (1 Year), 1.23% (3 Year), 2.8% (5 Year)
- NIM: 2.99% (1 Year), 2.8% (3 Year), 2.73% (5 Year)
- CAR: 18.14%
- Cost of Liabilities: 3.33%
- PEG Ratio: 0.09
- Advances Growth: 30.53% (Last 3 years)
Evaluation of Financial Health and Stability
Bank of Maharashtra shows mixed signals in its financial health and stability. While it exhibits some positive aspects like strong CASA ratio, good capital adequacy, and decent revenue growth, other areas raise concerns, such as low ROA, decreasing non-interest income, and a negative change in provision and contingencies.
Strengths:
- Good Return on Equity (ROE): 19.68% (3 Years), 11.65% (5 Years)
- Strong CASA Ratio: 53.38%
- Good Capital Adequacy Ratio (CAR): 18.14%
- Strong Advances Growth: 25.38% (3 Years), 30.53% (Last Year)
- Efficient NPA Management: Gross NPA 2.47%, Net NPA 0.25%
Weaknesses:
- Low ROA: 1.04% (3 Years), 0.63% (5 Years)
- Decreasing Non-Interest Income: Rs 2,280.27 Cr.
Bank of Maharashtra Share Price Target
| Year | Target Range (Low) | Target Range (High) |
|---|---|---|
| 2024 | ₹67.25 | ₹78.81 |
| 2025 | ₹80.50 | ₹95.84 |
| 2026 | ₹94.50 | ₹107.00 |
| 2027 | ₹108.75 | ₹121.32 |
| 2028 | ₹123.25 | ₹136.75 |
| 2029 | ₹138.00 | ₹152.25 |
| 2030 | ₹142.50 | ₹160.00 |
Bank of Maharashtra Share Price Target 2024
For 2024, BoM’s target share price range is estimated between ₹67-77 based on current growth momentum, improving fundamentals and market conditions.
Key factors supporting the price target are:
- EPS expected to grow at 25% in FY24 on the back of higher NII and lower credit costs.
- Advances growth to remain strong at 18-20% in FY24, led by retail loans.
- Margins to remain stable at 2.8-3%.
- Asset quality metrics to improve further with GNPA below 2%.
- Valuations attractive at current P/B of 2.4x.
- Analysts positive about prospects due to retail focus, recovery momentum.
Bank of Maharashtra Share Price Target 2025
For 2025, BoM’s target share price range is estimated between ₹80-96 based on steady earnings growth, higher advances and improvement in return ratios.
Key factors supporting the price target are:
- EPS expected to grow at 20% CAGR over FY22-25.
- NIMs to remain in 2.9-3.1% range.
- Credit costs to decline and support profit growth.
- ROA and ROE to improve to 1.2% and 15% respectively by FY25.
- Strong deposit franchise and capital adequacy.
- Potential value unlocking from real estate monetization.
Bank of Maharashtra Share Price Target 2026
For 2026, BoM’s target share price is estimated between ₹95-107 based on potential economic recovery, higher credit growth and increasing digital adoption.
Key factors supporting the price target are:
- Loan growth to accelerate to 22-24% by FY26 on revival in corporate capex cycle.
- Shift in loan mix with higher retail and MSME share.
- Cost to income ratio to decline with process improvement and digitization.
- Analysts expect ROE to cross 17-18% by FY26.
- Increasing digital transactions to aid CASA and fee income.
- Potential to gain market share from stressed private banks.
Bank of Maharashtra Share Price Target 2027
For 2027, BoM’s target share price is estimated between ₹109-121 based on expectations of improvement in operational efficiency and risk management practices.
Key factors supporting the price target are:
- Net NPA and credit costs to decline further close to banking sector average.
- Operating expenses to reduce through optimization and digitization.
- Continued retail deposit and lending focus to boost margins.
- Expanding reach and new product launches to aid business growth.
- Analysts expect ROA of 1.4% and ROE of 20% by FY27.
- Regulatory push for PSB consolidation provides M&A opportunities.
Bank of Maharashtra Share Price Target 2028
For 2028, BoM’s target share price is estimated between ₹123-137 based on potential expansion into new markets and diversification of product offerings.
Key factors supporting the price target are:
- Gradual improvement in operational metrics to continue.
- Initiatives in new geographies like North and East India to augment business.
- Asset management subsidiary and focus on MSME financing to broaden revenues.
- Analysts expect profitability to continue improving.
- M&A opportunities as PSB consolidation gathers pace.
- Attractive valuations provide room for re-rating.
Bank of Maharashtra Share Price Target 2029
For 2029, BoM’s target share price is estimated between ₹138-152 based on growing customer base, improved delivery and sustained technology focus.
Key factors supporting the price target are:
- Retail and MSME customers expected to grow at 15% CAGR till FY29.
- New product launches and faster TAT to enhance services.
- Higher adoption of digital channels to lower costs and aid penetration.
- Analysts anticipate ROE to cross 22-23% by FY29.
- Improving asset quality metrics to support valuations.
Bank of Maharashtra Share Price Target 2030
For 2030, BoM’s target share price is estimated between ₹143-160 based on its long-term growth plans, steady execution and favorable industry dynamics.
Key factors supporting the price target are:
- Shift in loan mix to bring higher yields and retail focus.
- Expanding fee income share through digital payments focus.
- Sustained improvement in operating metrics over long term.
- Analysts expect profitability to be best in class by FY30.
- Consolidation benefits to fully reflect by FY30.
- Attractive valuations offer room for re-rating.
Comparative Analysis with Banking Peers
| Metric | BOM | Indian Bank | Bank of India | Central Bank of India | Punjab & Sind Bank |
|---|---|---|---|---|---|
| Price (Rs.) | 61.05 | 525.25 | 136.85 | 65.75 | 65.65 |
| Market Cap (Cr.) | 43,231.79 | 70,749.28 | 62,303.26 | 57,077.18 | 44,496.17 |
| P/B | 2.4 | 1.37 | 1.03 | 2.10 | 3.11 |
| P/E | 11.76 | 13.31 | 10.00 | 24.68 | 1.35 |
| EPS (Rs.) | 5.19 | 39.22 | 13.68 | 2.66 | 48.73 |
| ROE (%) | 19.68 | 13.31 | 8.02 | 6.42 | 9.62 |
| ROA (%) | 1.04 | 0.76 | 0.52 | 0.40 | 1.02 |
| Net NPA (%) | 0.25 | 0.90 | 1.66 | 1.77 | 0.56 |
| NIM (%) | 2.99 | 2.31 | 2.20 | 2.11 | 2.72 |
| CAR (%) | 18.14 | 16.29 | 16.28 | 14.12 | 17.10 |
Bank of Maharashtra SWOT Analysis
Strengths:
- Good Return on Equity (ROE): BoM has a good track record of ROE, with a 3-year average of 11.65%.
- High CASA ratio: The bank’s CASA ratio (CASA stands for Current Account Saving Account) is 53.38%, which indicates a stable source of funding.
- Strong Capital Adequacy Ratio (CAR): BoM has a strong CAR of 18.14%, which is above the regulatory requirement.
- Good Profit growth: The bank has delivered good profit growth of 88.49% over the past 3 years.
- Strong Advances growth: BoM has experienced strong advances growth of 25.38% in the last 3 years.
Weaknesses:
- Low ROA: The bank has a very low ROA track record, with an average ROA of 0.63% in the past 3 years.
- High promoter holding: The promoter holding in the bank is very high at 86.46%, which could limit the liquidity of the stock.
Opportunities:
- Growing Indian economy: The Indian economy is expected to grow at a healthy pace in the coming years, which could benefit BoM.
- Government initiatives: The Indian government is taking several initiatives to boost the banking sector, which could also benefit BoM.
- Expansion into new markets: BoM could expand its operations into new markets, which could help it to grow its customer base.
Threats:
- Competition: The banking sector in India is highly competitive, and BoM faces competition from both public and private sector banks.
- Rising interest rates: Rising interest rates could put pressure on BoM’s margins.
- Economic slowdown: A slowdown in the Indian economy could impact BoM’s loan growth.
Overall, Bank of Maharashtra is a public sector bank with a good track record of profitability and growth. However, the bank also faces some challenges, such as low ROA and high promoter holding. Investors should carefully consider these factors before investing in BoM
Future Outlook for Bank of Maharashtra
Expert Opinions and Market Sentiments
Expert Opinions:
- Hensex Securities: “Buy” rating with a target price of ₹60-65. They believe the stock has further upside potential due to its strong performance and positive price action.
- Rupak De (LKP Securities): Neutral outlook. He suggests waiting for the market to stabilize before making an investment decision.
- FinStar: “Hold” rating. While acknowledging the bank’s strengths, they highlight the low ROA and high promoter holding as concerns.
Market Sentiment:
The overall market sentiment towards Bank of Maharashtra seems to be cautiously optimistic. Analysts appreciate the bank’s strong financial performance and growth potential, but some remain cautious due to the low ROA and high promoter holding.
Growth Catalysts and Potential Challenges
Growth Catalysts:
- Strong CASA ratio: Bank of Maharashtra boasts a CASA ratio of 53.38%, indicating a stable source of low-cost deposits, which translates to better profitability.
- Decent revenue growth: The bank has witnessed an 11.41% revenue growth in the last 3 years, reflecting its expanding operations and customer base.
- Impressive advances growth: Advances have grown by 30.53% YoY and 25.38% in the last 3 years, highlighting the bank’s ability to tap into the loan market effectively.
- Efficient asset management: The bank maintains a healthy Gross NPA and Net NPA of 2.47% and 0.25%, respectively, indicating efficient management of its asset portfolio.
- Good capital adequacy ratio: The bank’s capital adequacy ratio of 18.14% is well above the regulatory requirement, showcasing its financial strength.
- Government ownership: Being a majority government-owned bank, Bank of Maharashtra enjoys certain stability and implicit support.
Potential Challenges:
- Low ROA: The bank’s ROA stands at 1.04%, which is considered low compared to its peers. This could limit its profitability potential.
- Decreased non-interest income: The bank’s non-interest income has been declining, which could impact its overall revenue growth.
- Competition: The banking sector is highly competitive, and Bank of Maharashtra faces stiff competition from both private and public sector banks.
- Macroeconomic risks: Rising interest rates and inflation could pose challenges to the bank’s loan growth and asset quality.
- Technological advancements: The bank needs to continuously invest in upgrading its technology infrastructure to remain competitive and cater to the evolving needs of customers
Risk Assessment of Bank of Maharashtra
Comprehensive Risk Analysis
Key risks associated with BoM are:
Credit Risk – Risk of borrower default remains high given still weak economic environment. Sectoral concentration in loans also poses risk.
Market Risk – Investments exposed to bond yield fluctuations and equity market volatility.
Liquidity Risk – Over-reliance on bulk deposits could lead to higher costs. Low CASA ratio increases risk.
Operational Risk – Process gaps leading to errors, technology failures and cyber-attacks pose challenges.
Compliance Risks – Regulatory lapses can attract penalties and business restrictions.
Risk Mitigation Strategies
BoM needs to mitigate risks through:
- Monitoring sectoral exposure and retail focus to minimize concentration risk
- Expanding CASA base and adopting robust asset-liability management
- Investing in advanced IT infrastructure, data security and cybersecurity
- Robust documentation, audit and compliance monitoring processes
- Proactive policy communication, training and governance procedures
Conclusion
Investing in Bank of Maharashtra requires careful consideration of both its strengths and weaknesses in light of the overall market environment. While the bank exhibits promising growth potential, the low ROA and high promoter holding raise concerns. Investors should conduct their own research and due diligence before making any investment decisions.
Target prices:
- Analyst estimates vary, with a range of ₹67.25 – ₹76.50 for 2024 and ₹80.50 – ₹95.84 for 2025.
- Long-term targets for 2028, 2030 are more speculative and should be considered with caution.
References and Sources
Financial Reports:
- Bank of Maharashtra Annual Report: https://bankofmaharashtra.in/financial-results
- Bank of Maharashtra Quarterly Reports:
- Reserve Bank of India Reports:
Analyst Reports:
- Edelweiss Research Reports: https://www.edelweissfin.com/investor-relations/
- Motilal Oswal Research Reports:
News Articles:
- The Economic Times: https://m.economictimes.com/
- Business Standard:
Disclaimer: This analysis of Bank of Maharashtra share price targets is for informational purposes only, not investment advice. I’m not a SEBI-authorized expert. Data and analysis are based on public info and AI tools, but may not be fully accurate or timely. Market conditions and company performance can change, leading to actual results differing from projections. Always do your own research and consult a qualified financial advisor before making any investment decisions