Best Stocks to Buy in India for Short term 2021 – RBL Bank Ltd

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

YearRevenue(cr.)Profit(cr.)
202110,609.87529.46
202010,696.69 500.18
20197,743.07857.83
20185,630.29631.67

We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2021  2020 2019  2018
87,952.5278,418.5372,868.8255,183.50

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 HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 20210.00%34.61%13.54%6.43%45.42%
Mar 20210.00%34.25%14.21%7.61%43.92%
Dec 20200.00%37.57%12.50%7.56%42.36%
Sep 20200.00%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.

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

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

0 Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like