Canara Bank (CANBK) AI Stock Analysis

• Market Cap: ₹1.01T
• Dividend Yield: 3.56%
• Average Volume (3M): 2.84M
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.40
• Revenue Growth: 9.22%
• EPS Growth: 18.54%
• Country: IN
• Employees: 82,638
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 5.20
• Shares Outstanding: 9,070,651,000
• 10 Day Avg. Volume: 887,290
• 30 Day Avg. Volume: 2,843,637
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹102.50
• Price Target Upside: -7.70% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ₹122.00 ▲(9.86% Upside)

Canara Bank's strong financial performance and attractive valuation are the primary drivers of its stock score. While technical indicators suggest some short-term bearishness, the stock's undervaluation and solid dividend yield provide a compelling case for long-term investors.

Canara Bank Business Overview & Revenue Model

Company Description

Canara Bank (CANBK) is one of the largest public sector banks in India, providing a wide range of financial products and services. Established in 1906, the bank operates across various segments including personal banking, corporate banking, NRI banking, and priority sector lending. Its core services include savings and current accounts, fixed deposits, loans, credit cards, investment services, and insurance products. Canara Bank is known for its extensive branch network and has a significant presence both domestically and internationally.

How the Company Makes Money

Canara Bank generates revenue primarily through interest income from its lending activities, which include personal loans, home loans, corporate loans, and agricultural loans. The bank also earns income through fees and commissions from various services such as processing fees for loans, transaction fees for banking services, and commissions on insurance and investment products. Additionally, Canara Bank gains revenue from treasury operations, where it invests in government securities, bonds, and other financial instruments. Partnerships with insurance companies and mutual funds providers further contribute to its earnings by offering bancassurance and mutual fund distribution services.

Canara Bank Financial Statement Overview

Summary

Canara Bank showcases a solid financial performance across all verticals. The strong revenue growth, improved net profit margin, and healthy cash flow indicate robust financial health. The bank's strategic management of resources positions it well for future growth, although maintaining a balance between debt and equity is crucial to ensure stability.

Income Statement

Canara Bank has demonstrated strong revenue growth over the years, with a notable increase from 2020 to 2025. The gross profit margin is robust, indicating effective cost management. The net profit margin has improved significantly, reflecting enhanced profitability. The EBIT and EBITDA margins have shown a healthy upward trend, indicating operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity position with a healthy debt-to-equity ratio, suggesting a balanced leverage strategy. The return on equity has improved over the years, highlighting effective utilization of shareholder funds. The equity ratio indicates stability, with a significant portion of assets funded by equity, reducing financial risk.

Cash Flow

Cash flow analysis shows a substantial increase in operating cash flow, supporting expansion and shareholder returns. Free cash flow has grown significantly, enhancing financial flexibility. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.53T	1.53T	1.39T	1.08T	928.10B	932.59B
Gross Profit	699.77B	699.77B	670.47B	553.77B	497.74B	480.76B
EBITDA	230.25B	238.95B	209.01B	159.84B	103.49B	49.74B
Net Income	175.40B	175.40B	152.79B	112.55B	61.25B	28.91B
Balance Sheet
Total Assets	17.31T	17.31T	15.35T	13.81T	12.58T	11.80T
Cash, Cash Equivalents and Short-Term Investments	2.06T	2.06T	1.51T	1.42T	1.82T	1.79T
Total Debt	896.65B	896.65B	1.56T	1.44T	1.05T	1.00T
Total Liabilities	16.24T	16.24T	14.42T	13.02T	11.87T	11.16T
Stockholders Equity	1.05T	1.05T	921.33B	780.54B	699.61B	624.10B
Cash Flow
Free Cash Flow	0.00	606.69B	297.93B	-405.91B	979.70M	581.95B
Operating Cash Flow	0.00	606.69B	310.46B	-399.78B	9.19B	591.18B
Investing Cash Flow	0.00	-24.61B	-17.48B	-12.38B	-12.56B	-10.29B
Financing Cash Flow	0.00	-35.06B	1.29T	4.45B	40.35B	2.90B

Canara Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CANBK, the sentiment is Positive. The current price of 111.05 is above the 20-day moving average (MA) of 109.40, above the 50-day MA of 110.90, and above the 200-day MA of 98.43, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 84.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CANBK.

Canara Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANKBARODA	80 Outperform	₹1.28T	6.57		3.41%	7.78%	2.18%
PNB	74 Outperform	₹1.24T	7.37		2.71%	15.52%	37.23%
UNIONBANK	74 Outperform	₹1.05T	5.58		3.47%	7.65%	28.06%
CANBK	73 Outperform	₹1.01T	5.47		3.56%	9.22%	18.54%
IDBI	70 Outperform	₹962.88B	12.16		2.35%	16.28%	25.78%
Sector *	68 Neutral	$17.52B	11.72	10.43%	3.85%	9.75%	2.39%

Canara Bank Corporate Events

Canara Bank Elects New Shareholder Directors

Canara Bank has announced the election of two new Shareholder Directors, Ms. Abha Singh Yaduvanshi and Shri Gunjeet Singh Pannu, effective from July 27, 2025, for a three-year term. This change in directorship aims to strengthen the bank’s governance and bring diverse expertise to its board, potentially impacting its strategic direction and stakeholder interests positively.