Our 9th company in the Series of Best Stocks to Buy in India for Short term 2021 is RBL Bank Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
RBL Bank Limited is a banking company offering services and products to individuals and small businesses across urban and rural India.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹10,538cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 19.85
Sector PE Ratio: 27.44
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 0.83
Sector PB Ratio : 2.32
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 1.5
Sector Dividend Yield : 0.54%
Dividend Yield of this company is high than Sector. Dividend of this is Average than the peers of this company.
ROE: 4.18%
ROCE: 7.78%
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 10,609.87 | 529.46 |
| 2020 | 10,696.69 | 500.18 |
| 2019 | 7,743.07 | 857.83 |
| 2018 | 5,630.29 | 631.67 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 87,952.52 | 78,418.53 | 72,868.82 | 55,183.50 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2020 , Company have 87,952.52 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 7,452.47 | -5,399.38 | -116.94 | -2,726.40 |
Asset Level: RBL Bank Ltd Assets to Equity ratio (7.9x) is low.
Allowance for Bad Loans: Insufficient data to determine if RBL Bank Ltd has a sufficient allowance for bad loans.
Low Risk Liabilities: 83% of RBL Bank Ltd liabilities are made up of primarily low risk sources of funding.
Loan Level: RBL Bank Ltd has an appropriate level of Loans to Assets ratio (58%).
Low Risk Deposits: RBL Bank Ltd Loans to Deposits ratio (80%) is appropriate.
Level of Bad Loans: RBL Bank Ltd has a high level of bad loans (4.4%).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 0.00% | 34.61% | 13.54% | 6.43% | 45.42% |
| Mar 2021 | 0.00% | 34.25% | 14.21% | 7.61% | 43.92% |
| Dec 2020 | 0.00% | 37.57% | 12.50% | 7.56% | 42.36% |
| Sep 2020 | 0.00% | 36.82% | 11.32% | 7.16% | 44.70% |
Above table showing there is no big change in Mutual Fund which is 13.54% in June 2021. FIIs invested in June 2021 with 34.61% and retail investor is 45.42%.
Investment Checklist for RBL Bank Ltd.
- Earnings have declined by 14.7% per year over past 5 years
- Significant insider selling over the past 3 months
- Whilst currently unprofitable, they have been profitable on average for the past 5 years
- They do not pay a dividend
- Share price has been stable over the past 3 months
- At least 3 years of financial data is available
- Revenue is meaningful (₹31B)
- Market cap is meaningful (₹105B)
- RBLBANK does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 150 to 160
Target: 200 (40% Upside)
Time Horizon: 6-8 Months
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
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Hope you liked Our 9th company in the Series of Best stocks to buy in India for short term 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss