Bank of Maharashtra is set to announce its Q1FY26 results later today, and with robust credit growth of 15.36% to ₹2.41 lakh crore in the first quarter, investors are eyeing whether strong earnings could spark a fresh uptrend in the stock.
Bank of Maharashtra is currently in a healthy correction phase after a sharp rally. The stock has shed 1.9% over the past week.
The stock is showing signs of resilience as it consolidates above a key weekly support zone between ₹50 - ₹54, said SEBI-registered analyst Rohit Mehta. Key resistance lies at its all-time high price of ₹71.21.
While the long-term trend remains bullish, driven by a strong recovery from multi-year lows, recent price action reflects a correction, he said.
Technical indicators suggest that as long as the support holds, the stock could attempt a base formation and eventual reversal. Accumulation patterns remain strong, with sustained volume growth observed since 2020, Mehta said.
From a fundamental standpoint, the bank’s financial performance remains encouraging. In the March quarter, revenue rose 23.12% while financing profit surged 126%. Shareholding trends also show rising foreign institutional investors (FII) interest, while promoter stake remains stable at 79.60%.
On the positives, Bank of Maharashtra boasts a five-year profit CAGR of nearly 70%, improved working capital efficiency, and a healthy dividend payout ratio of 26.2%. However, concerns remain over its low interest coverage ratio, high contingent liabilities of around ₹47,914 crore, and a potentially unsustainable tax rate, the analyst added.
Retail sentiment on Stocktwits continued to remain ‘bearish’.
The stock is currently trading at ₹56.37, down 1.5% in early trade. Year-to-date (YTD) gains stand at 8.2%.
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