Indbank Merchant Banking Services Limited (INDBANK) AI Stock Analysis

• Market Cap: ₹1.61B
• Dividend Yield: N/A
• Average Volume (3M): 28.40K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 1.31
• Revenue Growth: -18.35%
• EPS Growth: -43.75%
• Country: IN
• Employees: 92
• Sector: Services
• Sector Strength: N/A
• Industry: Financial - Capital Markets
• EPS (TTM): 0.42
• Shares Outstanding: 44,378,200
• 10 Day Avg. Volume: 71,528
• 30 Day Avg. Volume: 28,403
• PEG Ratio: -2.58
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 4.82
• P/FCF Ratio: -742.23
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹46.00 ▲(10.05% Upside)

The score is primarily supported by strong financial performance (profitable growth and a low-leverage balance sheet). Technicals are constructive with the stock above key moving averages, but elevated RSI increases near-term pullback risk. Valuation is a headwind due to the relatively high P/E and lack of dividend yield data.

Positive Factors

Low leverage / strong balance sheet

A very low debt-to-equity ratio provides durable financial flexibility, enabling Indbank to fund underwriting, advisory mandates and strategic investments without pressure from interest burden. This strengthens resilience through capital markets cycles and supports opportunistic growth.

Diversified fee-based revenue streams

Multiple fee lines — advisory, broking, portfolio management and underwriting — create a diversified, higher-margin business mix. That reduces reliance on any single market segment, supports recurring income, and helps stabilize revenues across different market cycles.

Improving margins and profitability

Sustained improvement in net and operating margins indicates effective cost management and scalable operations. Higher margins enhance free cash flow potential over time, support reinvestment in capabilities, and improve return on equity for shareholders.

Negative Factors

Recent revenue and EPS decline

Material negative top-line and EPS trends signal weakening demand or execution issues that can persist across quarters. Persistent revenue contraction undermines margin leverage, limits reinvestment capacity, and raises execution risk for growth initiatives.

Negative recent free cash flow and cash volatility

Negative free cash flow and volatility, even with positive operating cash flow, suggest heavy investing or working-capital swings. This can constrain capital allocation, force external financing for growth or underwriting commitments, and reduce strategic optionality.

Limited scale and market liquidity

A relatively small headcount and low average trading volume indicate limited operational scale and market liquidity. Scale constraints can hamper ability to win large mandates, increase fixed-cost sensitivity, and limit institutional investor interest over the medium term.

Indbank Merchant Banking Services Limited Business Overview & Revenue Model

Company Description

Indbank Merchant Banking Services Limited provides merchant banking, stock broking, depository participant, and allied services in India. The company offers merchant banking services for public issues, rights issues, private placement, acquisition of shares and takeovers, and employee stock option schemes/stock purchase scheme by corporates. It also provides advisory services for valuation of shares and other financial instruments; syndication of loans; acquisitions; mergers and amalgamations; and project counseling, appraisal, and feasibility studies. In addition, it offers stock broking services in the cash, derivatives, and wholesale debt market segments for retail and institutional investors; online trading services; and e-services, as well as distributes mutual funds and other investment products. The company was incorporated in 1989 and is based in Chennai, India. Indbank Merchant Banking Services Limited is a subsidiary of Indian Bank.

How the Company Makes Money

Indbank generates revenue through various channels including advisory fees from corporate finance transactions, commissions from stock broking activities, and management fees from portfolio management services. The company also earns income from underwriting services, where it assists clients in raising capital through equity or debt offerings. Additionally, Indbank's investment in mutual funds and other financial instruments contributes to its earnings. Strategic partnerships with financial institutions and corporations enhance its service offerings and create additional revenue opportunities, while a robust client base ensures a steady flow of business.

Indbank Merchant Banking Services Limited Financial Statement Overview

Summary

Indbank showcases strong financial health with robust revenue growth, efficient profitability margins, and a solid balance sheet with minimal leverage. However, the negative free cash flow in recent periods highlights potential areas for improvement in cash management.

Income Statement

Indbank exhibited solid revenue growth with a notable increase in total revenue from previous years. The gross profit margin remained stable, while the net profit margin showed improvement due to effective cost management. The EBIT and EBITDA margins also reflected operational efficiency. Overall, the company demonstrated strong profitability trends.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio, indicating minimal leverage and strong equity position. The return on equity has been healthy, reflecting efficient utilization of shareholder funds. The equity ratio shows a solid equity base relative to total assets, enhancing financial stability.

Cash Flow

Cash flow performance showed some volatility with negative free cash flow in the most recent period, despite positive operating cash flow. The operating cash flow to net income ratio indicated good cash generation capability. However, the negative free cash flow trend raises concerns about capital management and investment efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	492.84M	209.53M	195.66M	159.06M	176.31M	120.12M
Gross Profit	343.02M	106.94M	100.03M	81.11M	107.44M	64.19M
EBITDA	238.54M	121.89M	121.03M	63.45M	102.84M	65.69M
Net Income	163.24M	84.63M	89.99M	35.02M	69.64M	40.59M
Balance Sheet
Total Assets	1.17B	1.18B	1.06B	973.82M	946.95M	841.86M
Cash, Cash Equivalents and Short-Term Investments	841.88M	818.68M	629.83M	333.75M	162.01M	217.70M
Total Debt	30.56M	124.00K	0.00	27.85M	0.00	0.00
Total Liabilities	212.35M	264.38M	229.70M	228.77M	235.63M	199.05M
Stockholders Equity	955.56M	916.52M	833.69M	745.05M	711.32M	642.81M
Cash Flow
Free Cash Flow	0.00	-1.74M	-13.19M	-618.00K	127.08M	58.64M
Operating Cash Flow	0.00	755.00K	-11.57M	304.00K	5.55M	81.43M
Investing Cash Flow	0.00	5.62M	-1.75M	-10.29M	-9.76M	-84.36M
Financing Cash Flow	0.00	-1.22M	-713.00K	-8.89M	-15.04M	-15.11M

Indbank Merchant Banking Services Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDBANK, the sentiment is Positive. The current price of 41.8 is above the 20-day moving average (MA) of 35.61, above the 50-day MA of 36.56, and above the 200-day MA of 34.77, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 39.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INDBANK.

Indbank Merchant Banking Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDBANK	71 Outperform	₹1.61B	25.52	―	―	-18.35%	-43.75%
DHRUV	63 Neutral	₹830.74M	12.32	―	0.42%	-9.83%	-5.90%
SECMARK	62 Neutral	₹1.23B	31.66	―	―	28.58%	68.42%
RKEC	59 Neutral	₹1.28B	8.05	―	―	-12.26%	-36.87%
BRNL	58 Neutral	₹1.73B	0.96	―	―	-57.13%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Indbank Merchant Banking Services Limited Corporate Events

Indbank Closes Trading Window Ahead of December Quarter Results

Indbank Merchant Banking Services Limited has announced the closure of its trading window for designated persons and their immediate relatives from 31 December 2025 until 48 hours after the declaration of its financial results for the quarter ended 31 December 2025. The move, made in compliance with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, is intended to prevent insider trading and ensure fair disclosure practices ahead of the quarterly earnings announcement, reinforcing governance standards for employees and connected persons.

Indbank Releases Financial Results for September 2025

Indbank Merchant Banking Services Limited announced the publication of its financial results for the quarter and year ending September 30, 2025, in prominent newspapers. This disclosure is part of the company’s commitment to transparency and regulatory compliance, potentially impacting its market perception and stakeholder confidence.