BSE:532772

Stock Analysis Report

Executive Summary

DCB Bank Limited provides various banking and financial products and services in India.


Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

How has DCB Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532772 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

532772

-1.3%

IN Banks

-0.4%

IN Market


1 Year Return

-1.7%

532772

9.6%

IN Banks

11.1%

IN Market

Return vs Industry: 532772 underperformed the Indian Banks industry which returned 9.6% over the past year.

Return vs Market: 532772 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532772IndustryMarket
7 Day-4.6%-1.3%-0.4%
30 Day-16.9%-3.1%-1.5%
90 Day-5.4%-1.6%3.3%
1 Year-1.3%-1.7%10.0%9.6%13.0%11.1%
3 Year11.8%10.6%14.8%13.5%25.3%18.6%
5 Year51.8%50.1%10.8%7.3%35.4%23.1%

Price Volatility Vs. Market

How volatile is DCB Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

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Valuation

Is DCB Bank undervalued compared to its fair value and its price relative to the market?

14.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532772 (₹168.85) is trading above our estimate of fair value (₹22.56)

Significantly Below Fair Value: 532772 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532772 is good value based on its PE Ratio (14.3x) compared to the Banks industry average (18.8x).

PE vs Market: 532772 is poor value based on its PE Ratio (14.3x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532772's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532772 is overvalued based on its PB Ratio (1.6x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is DCB Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as DCB Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has DCB Bank performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532772 has high quality earnings.

Growing Profit Margin: 532772's current net profit margins (25.3%) are higher than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: 532772's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: 532772's earnings growth over the past year (24.6%) exceeds its 5-year average (15% per year).

Earnings vs Industry: 532772 earnings growth over the past year (24.6%) underperformed the Banks industry 25.5%.


Return on Equity

High ROE: 532772's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DCB Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 532772 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532772's debt is not covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: 532772's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 532772 has a sufficient allowance for bad loans.

Low Risk Liabilities: 532772's liabilities are made up of primarily low risk sources of funding.

Loan Level: 532772 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 532772's loans are broadly funded by customer deposits.

Level of Bad Loans: 532772 has a high level of bad loans (2.11%)


Next Steps

Dividend

What is DCB Bank's current dividend yield, its reliability and sustainability?

0.59%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532772's dividend (0.59%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532772's dividend (0.59%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 532772 has been paying a dividend for less than 10 years.

Growing Dividend: 532772's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.5%), 532772's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Murali Natrajan (57yo)

10.8yrs

Tenure

₹49,357,143

Compensation

Murali M. Natrajan has served as Managing Director & Chief Executive Officer of DCB Bank Ltd. (the "Bank") since April, 2009. He has 33 years global experience in financial services. This includes Branch B ...


CEO Compensation Analysis

Compensation vs Market: Murali's total compensation ($USD690.18K) is above average for companies of similar size in the Indian market ($USD397.73K).

Compensation vs Earnings: Murali's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Murali Natrajan
MD, CEO & Non-Independent Executive Director10.8yrs₹49.36m0.64% 347.8m
Bharat Sampat
President & CFO11.4yrsno data0.0081% 4.3m
R. Venkattesh
President and Head of Operations0yrsno data0.021% 11.3m
Abhijit Shah
Chief Technology Officer0yrsno datano data
Gaurav Mehta
Head of Marketing2.8yrsno data0.0043% 2.3m
Aditya Prasad
Chief Compliance Officer1.3yrsno datano data
Rubi Chaturvedi
Company Secretary & Compliance Officer0yrsno datano data
Praveen Kutty
President and Head of Retail & SME Banking0yrsno data0.11% 60.9m
Sridhar Seshadri
Executive VP & Chief Risk Officer0yrsno data0.0052% 2.8m
Abhijit Bose
Chief Credit Officer2.8yrsno datano data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: 532772's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Murali Natrajan
MD, CEO & Non-Independent Executive Director10.8yrs₹49.36m0.64% 347.8m
Nasser Munjee
Non-Executive Part-time Chairman of the Board14.5yrs₹2.40m0.0014% 766.2k
Srinivasan Sridhar
Independent Non-Executive Director7.3yrs₹1.96mno data
Chakrapany Narasimhan
Independent Non-Executive Director7.3yrs₹2.04mno data
Rupa Singh
Non-Executive Independent Director5.1yrs₹1.99mno data
Ashok Barat
Independent Non-Executive Director1.9yrs₹860.00kno data
Jamal Pradhan
Non-Executive Non-Independent Director7.1yrs₹570.00k0.0015% 820.1k
Shaffiq Dharamshi
Non-Executive Non-Independent Director5.1yrsno datano data
Iqbal Khan
Non-Executive Non-Independent Director2.6yrs₹300.00kno data
Amyn Jassani
Independent Director0.08yrsno datano data

6.1yrs

Average Tenure

63yo

Average Age

Experienced Board: 532772's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DCB Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DCB Bank Limited
  • Ticker: 532772
  • Exchange: BSE
  • Founded: 1930
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹53.954b
  • Shares outstanding: 310.26m
  • Website: https://www.dcbbank.com

Number of Employees


Location

  • DCB Bank Limited
  • Tower A
  • 6th Floor
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532772BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2006
DCBBANKNSEI (National Stock Exchange of India)YesEquity SharesININROct 2006

Biography

DCB Bank Limited provides various banking and financial products and services in India. It operates through Treasury Operations, Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company offers deposit products, such as current and savings accounts, fixed deposits, term deposits, FCNR deposits, and NRE recurring deposits, as well as portfolio investment schemes; and personal, smart credit, home, gold, car, business and micro business, commercial vehicle, working capital, term, farmer, microfinance, and warehouse construction loans, as well as trade finance and warehouse receipt funding products. It also provides debit, payless, gift, and prepaid cards; life, health, car/motor, travel, home, and group personal accident insurance products; investment products comprising mutual funds, and demat and smart trade accounts, as well as mobile, Internet, and phone banking services. The company serves customers in various segments, including retail, micro-SME, SME, mid-corporate, agriculture, commodities, government, and public sectors, as well as microfinance institutions, Indian banks, co-operative banks, and non-banking finance companies. As of March 31, 2019, it operated through a network of 333 branches and 504 ATMs in 19 states and 3 union territories. The company was formerly known as Development Credit Bank Limited and changed its name to DCB Bank Limited in October 2013. DCB Bank Limited was founded in 1930 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:52
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.