Case study

CANBK

Canara Bank

Worth a closer look1y model +1.5%

Each stock's 10,000-path forecast, rendered as light.

0Score

Canara Bank (CANBK) Stock Analysis & Case Study

Is CANBK a good buy? The data-driven verdict.

Canara Bank (CANBK) trades at ₹135,on the numbers it worth a closer look, a Downstox Snapshot Score of 69/100.

On the numbers, Canara Bank (CANBK) worth a closer look, a Downstox Snapshot Score of 69/100, weighing inexpensive at 6.8× earnings, ROE of 16.1%, a 52% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

CANBK fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹1.22L Cr
Current price
₹135
P/E ratio
6.8×
P/B ratio
1.04×
Book value
₹130
Dividend yield
3.12%
ROCE
6.5%
ROE
16.1%
Piotroski F-Score
4/9

Is CANBK overvalued? CANBK P/E vs its Banking

CANBK's P/E of 6.8× sits below the Banking peer median of 17.9×, so on earnings it screens cheaper than peers, while its 3.12% dividend yield is above the peer median of 0.81%.

CANBK P/E
6.8×
Peer median P/E
17.9×
CANBK div yield
3.12%
Peer median yield
0.81%

CANBK share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of CANBK history (6%/yr drift, 30%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
CANBK 2027₹91₹136₹200+1%
CANBK 2028₹79₹137₹238+3%
CANBK 2029₹71₹140₹276+5%
CANBK 2030₹66₹142₹312+6%
CANBK 2031₹61₹144₹345+8%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability CANBK goes up, or doubles?

52%
Higher in 1 year
Modelled chance the price is above today in 12 months
54%
Higher in 5 years
Modelled chance the price is above today in 5 years
18%
Doubles in 5 years
Modelled chance of reaching ₹267 within 5 years

The bull case for CANBK

  • Trades at just 6.8× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection.
  • Low price-to-book of 1.04×, the market is paying little over the company's net assets.
  • A healthy 16.1% return on equity.
  • Pays a 3.1% dividend yield, so you're partly paid to wait.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹276.

The bear case & risks

  • No model or past record guarantees future returns, treat this as one input, not a decision.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹71.

CANBK volatility & expected range, how bumpy is the ride?

Over the last 2.0 years CANBK compounded at 6%/year with annualized volatility of 30%. That volatility implies a 1-year 80% range of ₹91₹200, the honest backbone behind any single price target.

CANBK price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
1.5%
80% range₹91–₹200
P(price ↑)52%
P(price 2×)1%
3-Year Forecast
2029
₹0
Median (P50)
4.6%
80% range₹71–₹276
P(price ↑)53%
P(price 2×)11%
5-Year Forecast
2031
₹0
Median (P50)
8.0%
80% range₹61–₹345
P(price ↑)54%
P(price 2×)18%

CANBK price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
CANBK simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds CANBK hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the CANBK price target & forecast page.

CANBK Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. CANBK scores 4/9,mixed financial health.

CANBK MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy CANBK with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox30.4%3.3×
Zerodha25.9%3.9×
DhanCHEAPEST23.4%4.3×

Compare every broker on the CANBK MTF page.

Which ace investors hold CANBK?

Held by 1 tracked superstar investor (from public NSE/BSE disclosures):

CANBK vs peers,Banking comparison

StockP/EDiv yieldMarket cap
CANBK (this stock)6.8×3.12%₹1.22L Cr
HDFCBANK15.9×1.65%₹12.11L Cr
ICICIBANK17.9×0.81%₹9.70L Cr
SBIN11.5×1.67%₹9.61L Cr
KOTAKBANK21.0×0.12%₹4.00L Cr
INDUSINDBK80.6×0.16%₹71,728 Cr
YESBANK22.3×0.00%₹78,371 Cr

About Canara Bank: sector, index & market-cap context

Canara Bank (CANBK) is a large-cap NSE-listed company in the Banking sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹1.22L Cr. See more Nifty 50 stocks.

How the CANBK Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Canara Bank's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

CANBK analysis, FAQs

Is Canara Bank (CANBK) a good buy?

On the numbers, Canara Bank (CANBK) worth a closer look, a Downstox Snapshot Score of 69/100, weighing inexpensive at 6.8× earnings, ROE of 16.1%, a 52% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is CANBK overvalued or undervalued?

CANBK trades at 6.8× earnings versus a peer median of 17.9×, so it screens cheaper than its Banking peers.

What is the CANBK share price target for 2031?

CANBK's probability-weighted 2031 median target is ₹144, with an 80% range of ₹61₹345 (10,000-path Monte-Carlo).

What is the probability CANBK doubles in 5 years?

The modelled probability of CANBK reaching ₹267 (2×) within 5 years is 18%.

What is the bull case for CANBK?

Trades at just 6.8× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection. Low price-to-book of 1.04×, the market is paying little over the company's net assets. A healthy 16.1% return on equity.

What are the risks in CANBK?

No model or past record guarantees future returns, treat this as one input, not a decision.

More on CANBK