Should you buy, sell or hold Bandhan Bank shares after lender's mixed Q4 show?
Bandhan Bank Share Price, Bandhan Bank Q4 FY24 Results: Is it a good time to buy Bandhan Bank (BANDHANBNK) shares now? Or should you sell the Bandhan Bank stock? Brokerages are divided on Bandhan Bank shares after the lender last week staged a mixed financial performance for the fourth and final quarter of FY24.
Bandhan Bank Share Price, Bandhan Bank Q4 FY24 Results, Bandhan Bank Market News: Bandhan Bank (BANDHANBNK) reported a mixed set of numbers for the fourth and final quarter of the financial year 2023-24. While its net profit fell 93.2 per cent on a year-on-year basis to Rs 54.6 crore, its net interest income (NII) increased about 16 per cent to Rs 2,866.3 crore for the January-March period. The bank's net interest margin (NIM), however, expanded by 40 basis points (bps) sequentially to 7.6 per cent.
Should you buy, sell or hold Bandhan Bank (BANDHANBNK) shares now? Here's what brokerages say:
Neutral rating, target revised to Rs 203 from Rs 211: Goldman Sachs
Goldman Sachs has maintained its 'neutral' rating for Bandhan Bank after the lender's earnings announcement, and reduced its target price for the stock to Rs 203 from Rs 211.
At the closing level of May 18, the brokerage's target implies an upside of 11 per cent in the stock.
CLSA maintains 'accumulate' on Bandhan Bank
CLSA has retained its 'accumulate' rating for Bandhan Bank but reduced its target for the stock by Rs 40 to Rs 210.
The brokerage's target suggests an upside of 14.8 per cent in the stock.
Jefferies maintains 'underperform' on Bandhan Bank
Nomura has continued with its 'reduce' rating for Bandhan Bank with a target price of Rs 170.
Its target suggests a downside of 7.1 per cent in the stock, as of May 18.
Sequential fall in slippages partly seasonal but still higher: Jefferies
According to Jefferies, Bandhan Bank's quarterly profit fell short of its estimate due to higher write-offs of older or Credit Guarantee Fund for Micro Unit (CGFMU) loans even as its management expects a recovery.
The brokerage also awaits clarity on the management's succession plans.
JPMorgan cuts Bandhan Bank target price by Rs 10
JPMorgan has kept its 'overweight' rating and revised its target to Rs 260 from Rs 270.
Its target implies an upside of 42.2 per cent in the banking stock.
Bandhan Bank valuation supportive: JPMorgan
According to JPMorgan, Bandhan Bank's profitability was impacted by elevated provisions (Rs 1,770 crore) in the January-March period.
The brokerage values Bandhan Bank at a prive-to-book value multiple of 1.2 times its FY25 estimate. Its price-to-earnings estimate for Bandhan Bank stands at seven times.