banking · CANBK
Canara Bank
Canara Bank: PE below historical average. NARROW LEADERSHIP regime.
Price
₹124.28
Price 2026-07-30
5 day
-1.09%
Short-term move
1 month
-0.99%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹113.4k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Canara Bank (CANBK) in the banking sector?”
Price chart
₹124
+11.95% over period
About Canara Bank
Canara Bank provides various banking products and services in India and internationally. The company offers deposits and accounts, such as savings accounts, current accounts, recurring deposits, and term deposits; unclaimed deposits; loan products, including home, vehicle, education, personal, mortgage, gold, MSME, agri, and solar loans; life, general, and health insurance products; corporate loans comprising working capital, infrastructure, and export finance products, as well as term loans; depository services, merchant banking, and online trading services; and mutual funds. The company also provides digital lending portal; mobile and internet banking; credit, debit, and prepaid cards; UPI and fastag; missed call banking; online account opening services; and payment solutions; NRI banking accounts; remittance facilities; attorneyship service; and nomination facility. In addition, it offers supply chain finance management; syndication services; IPO monitoring services; locker services; doorstep banking services; and consultancy services, which includes estate and wills, private and charitable religious trustee, debenture and security trusteeship, and attorney services. Further,...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -11.9% over 14 days) — not a reliable pattern.
52-week position
Trading at 76.3% of 52-week high
Technicals
RSI 14
38.6
Trend
downtrend
50 DMA
Below
200 DMA
Below
Key metrics
P/E ratio
5.8
29th pct · 7 quarterly points (limited history)
P/B
1.0
ROE
15.9%
Moderate profitability — 15.9% ROE
Market cap
₹113.4k Cr
Revenue growth
-4670.0% YoY
Promoter
64.5%
52-week range
₹103.55 – ₹162.89
76.3% of high
RSI (14)
38.6
downtrend
vs 50 DMA
Below
DMA ₹128.47
Fundamental
82/100
STRONG
Trust
90/100
Verification
Coverage
100/100
HIGH
Quick Take
Canara Bank scores 82/100 on fundamentals (strong). Canara Bank: PE below historical average. NARROW LEADERSHIP regime.
Fundamental Score: 82/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 15.5% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 15.47% is moderate leverage-driven and stable. Net margin 29.7%, asset turnover 0.03x, leverage 16.0x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.
What This Means
Net margin of 29.7% means the company keeps ₹29.7 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
29.7%
Financial Health
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| HDFCBANK HDFC Bank | ₹753.95 | +0.9% | 18.5 | 13.8% | -180% | ₹12.8L Cr |
| ICICIBANK ICICI Bank | ₹1,433.9 | -0.1% | 18.9 | 16.4% | 6690% | ₹10.1L Cr |
| AXISBANK Axis Bank | ₹1,228.9 | +0.5% | 15.9 | 13.2% | -1100% | ₹4.2L Cr |
| BANKBARODA Bank of Baroda | ₹241.65 | -0.6% | 6.5 | 12.7% | -760% | ₹1.3L Cr |
| FEDERALBNK Federal Bank | ₹354.15 | -0.1% | 19 | 11.7% | 1230% | ₹81.8k Cr |
| AUBANK AU Small Finance Bank | ₹1,029.7 | +5.3% | 30.5 | N/A | 3710% | ₹79.8k Cr |
| BANKINDIA Bank of India | ₹137.22 | -3.5% | 6 | 12.1% | 1010% | ₹64.8k Cr |
| BANDHANBNK Bandhan Bank | ₹172.72 | +4.2% | 27 | 4.9% | 11930% | ₹33.0k Cr |
| CANBK Canara Bank | ₹124.28 | -0.8% | 5.8 | 15.9% | -4670% | ₹1.1L Cr |
Tensions to watch
PE in bottom 29% historically — undervaluation or fundamental deterioration?
Low PE can signal value OR declining growth expectations. Check recent earnings and sector outlook.
Bank Metrics
Return on Assets
0.96%
Benchmark: >1%
Efficiency Ratio
70.3%
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 0.96x — trading below book. Market pricing below book value — potential value opportunity or asset quality concern.
Key Watchpoints
Breaks above ₹130 (+5%)
Trend reversal confirmation
Breaks below ₹118 (-5%)
Further downside risk
PE reverts to median of 5.8 (7 quarterly points (limited history))
Valuation normalization
Banking sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
OCF is only 0.4x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
Profits are from core operations, not one-offs. High quality.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
