Best Stock To Buy In 2025? This PSU Bank Is Resilient Stock To Add In Your Portfolio; Fundamentals & Technical

Brokerage ICICI Direct has recommended buy on Indian Bank stock price in 2025. Here are the technical and fundamentals.

Technical:

- The PSU Bank Index shows a decisive trendline breakout after rebounding strongly from 52-week EMA, signaling resumption of structural uptrend.

- Within this space Indian Bank has
been the resilient stock which remains
our preferred pick as stock has
clocked a resolute breakout from 10
months contracting triangle,
indicating conclusion of corrective
phase

- Since December 2020, the stock has
been consistently finding support
from the 52-week EMA. Even in
current scenario, stock has formed a
base, indicating sustained buying
demand.

- We expect stock to head towards Rs
705 being measuring implication of
range breakout (615-490)

Fundamentals:

- Indian Bank is one of the largest and among the better performing PSU banks in India with a total business of over ₹ 12 lakh crore. The bank has diversified loan mix with RAM (retail/agri/MSME) forming ~62% to book catered by strong branch network of 5847 domestic branches.

- Indian Bank has delivered superior performance consistently on both business growth and asset quality. While business growth remained steady at ~12%
YoY, asset quality has been superior on relative basis with lower NNPA at 0.27% and better PCR at ~97.6%

- Growth with selective approach and focus on sustained margins & asset quality is seen to gradually drive improvement in RoA at 1.2-1.3% in FY25- 26E.
Given relatively stable performance historically along with steady outlook on growth at 12-14% and RoA at 1.1-1.2% bodes well at current valuation.