banking

Canara Bank

CANBK · Nifty 50

₹135.24

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionbanking sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score82/100 (STRONG). 2 positive flags, 2 concerns.

Historical Context205 similar technical setups. Average outcome: -12.0% decline. 0% positive.

Bank HealthROA 0.96% · PB 1.0 · Asset growth 8.9%.

Fundamental

82/100

STRONG

Trust

90/100

Verification

Coverage

44/100

LIMITED

Quick Take

Canara Bank scores 82/100 on fundamentals (strong). Canara Bank: BROAD EXPANSION regime.

Fundamental Score: 82/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 15.4% broken into three drivers. Each shows how efficiently the company generates returns.

ROE15.4%=

28.7%Net Margin

0.0xTurnover

16.0xLeverage

ROE of 15.37% is moderate leverage-driven and stable. Net margin of 28.7% × asset turnover of 0.03x × leverage of 16.0x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 28.7% means the company keeps ₹28.7 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.03x means the company generates ₹0.03 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 16.0x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

Net

28.7%

declining

Financial Health

Peer Comparison

Canara Bank is compared against 10 peers in the banking sector.

AUBANK AXISBANK BANDHANBNK BANKBARODA BANKINDIA FEDERALBNK HDFCBANK ICICIBANK IDFCFIRSTB INDIANB

Bank Metrics

Return on Assets

0.96%

Benchmark: >1%

Efficiency Ratio

71.3%

Lower is better

Asset Growth

+8.9%

Year over year

PB Ratio

1.0x

Price to book

ROA of 0.96% is adequate (benchmark: >1% for banks). Adequate but room for improvement. P/B of 1.01x — trading above book. Reasonable valuation for a bank.

Key Watchpoints

🟢

Breaks above ₹142 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹128 (-5%)

Further downside risk

🟢

Banking sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (44.8%) than equity (11.7%)

Risk Flags

🔴 1 Critical⚠️ 1 Warning✅ 2 Positive4 total flags

🔴Operating cash flow significantly below net income

Cash Flow

OCF is only 0.4x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Working capital changes are 244% of operating cash flow

Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

✅Minimal unusual items — clean earnings

Earnings Quality

Profits are from core operations, not one-offs. High quality.

✅High promoter holding: 64%

Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 1 warning flags. Exercise caution.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

✅ Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio

6.1UNAVAILABLE

P/B Ratio

1.0HIGH

Market Cap

₹11943326.5L CrHIGH

From 52W High

83% of high

Sector Peers

← All Stocks Market GPS Daily Brief banking Sector