Indian Overseas Bank
ISIN: INE565A01014 • Market Cap: ₹63,893 Cr
The 5-Pillar Quality Audit for Indian Overseas Bank
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (26.2%), Return on Capital Employed (11.3%), and equity compounding (17.4%).
2. Financial Health & Solvency
Weight: 25%Assesses capital adequacy, provisioning coverage, and asset liability structure.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (10.0%) and 3Y PAT CAGR (29.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 10.72 vs PEG of 0.68 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 92.4%, backed by 4.8% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 29.3%)
Net earnings have compounded at 29.3% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 10.72)
Trading at a P/E multiple of 10.72, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking IOB against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 76/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Financial Services Sector Peer Comparison
Compare IOB directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Indian Overseas Bank (IOB)Current | 76/100 | ₹63,893 Cr | 10.72 | 11.3% | N/A | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Indian Overseas Bank
Q:What is the 5-Pillar Fundamental Score for Indian Overseas Bank (IOB)?
Indian Overseas Bank has a RupeeTools Fundamental Score of 76/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (84/100), Financial Health (50/100), Growth (79/100), Valuation (95/100), and Ownership Quality (62/100).
Q:Is IOB fundamentally strong for long-term investment?
Yes, IOB exhibits solid fundamental strength with a 76/100 score, driven by a return on equity of 17.4% and a debt-to-equity ratio of 1.54.
Q:Does IOB pass the Coffee Can Investing filter?
Yes! IOB satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does IOB compare against other Financial Services peers?
Within India's Financial Services sector, IOB trades at a P/E of 10.72 and generates an ROCE of 11.3%. Compare its 5-Pillar score of 76/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.