Bandhan bank share price: Bandhan Bank shares gain 1.94% as Sensex rises

Bandhan bank share price: Bandhan Bank shares gain 1.94% as Sensex rises

Did you Know? Stock score of Bandhan Bank Ltd moved up by 1 in a month on a 10-point scale. View Latest Stock Report »

Shares of theLtd. traded at Rs 299.0 on BSE at 10:20AM (IST) on Monday, up 1.94 per cent. The stock quoted a 52-week low price of Rs 251.4 and a high of Rs 430.25.Earlier in the day, the stock saw a gap up opening.At the prevailing price, the stock traded at 23.63 times its trailing 12-month EPS of Rs 12.6 per share and 3.13 times its book value, as per BSE data.A total of 66,874 shares changed hands on the counter till 10:20AM (IST). The stock commands a market value of Rs 47941.57 crore and is part of the Banks - Private Sector industry.The scrip has been an underperformer , up 3.73 per cent in the past one year in comparison with a 45.92 per cent gain in Sensex During the day, the stock moved between Rs 299.65 and Rs 292.55.Promoters held 39.99 per cent in the company as of 30-Jun-2021. FII and MF ownership in Bandhan Bank Ltd. stood at 35.44 per cent and 1.86 per cent, respectively.

Brokerages see up to 49% upside in Bandhan Bank despite decline in Q1 profit

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Bandhan Bank share price gained over 2 percent in the morning session on August 2 after the bank declared its June quarter results.

Bandhan Bank on July 30 reported 32 percent decline in net profit at Rs 373.10 crore for June quarter 2021-22 as provisions for bad loans spiked. The bank had posted a net profit of Rs 549.80 crore in the same quarter a year ago.

Total income however was up 20.4 percent at Rs 2,647.50 crore in the quarter as against Rs 2,198.30 crore in the year-ago period, the bank said in a regulatory filing.

Also read: Bandhan Bank Q1 profit falls 32% at Rs 373 crore; NPA see a sharp spike

Bank’s gross non-performing assets (NPAs) spiked to 8.2 percent of gross advances as of June 30, 2021 from 1.4 percent by June 2020. Net NPAs (or bad loans) also jumped to 3.3 percent from 0.5 percent.

Provisions for bad loans and contingencies rose to Rs 1,374.87 crore in the quarter from Rs 849.06 crore parked aside in the year-ago period.

The stock was trading at Rs 299.20, up Rs 7.90, or 2.71 percent. It has touched an intraday high of Rs 303.45 and an intraday low of Rs 292.50.

Here is what brokerages have to say about the stock and the company after Q1 earnings:

CLSA | Rating: Underperform | Target: Rs 300

Govt package in Assam restricts the asset quality downside. It will likely prevent a bad-case scenario from playing out. Bengal MFI stress remains high. Overall, restructuring and ECLGS remain high and does not point to a quick normalisation.

Goldman Sachs | Rating: Buy | Target: Rs 447

The bank reported an operationally strong quarter with PPoP 4% ahead of estimates. Growth and most importantly, asset quality were majorly impacted due to strict local lockdowns. The brokerage maintained a buy rating, but removed the stock from its conviction list. Near-term macro uncertainty can weigh on the stock outperformance.

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JP Morgan | Rating: Overweight | Target: Rs 390

Asset quality shows an increase in stress, the brokerage expects it to bottom out by September. It estimates net provision charge of 6.2% based on restructured Book and SMA 1/2 Pool.

Kotak Institutional Equities: Rating: Add | Target: Rs 335

The bank reported a 32% YoY earnings decline primarily due to high provisions. Impaired ratios are currently high with gross NPL at 8%. The bank is likely to see an improvement in H2 as the economic situation improves.

The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Bandhan bank share price: Neutral on Bandhan Bank, target price Rs 330: Motilal Oswal

Did you Know? Stock score of Bandhan Bank Ltd moved up by 1 in a month on a 10-point scale. View Latest Stock Report »

Motilal Oswal has neutral call onwith a target price of Rs 330. The current market price of Bandhan Bank Ltd. is Rs 303.3. Time period given by analyst is one year when Bandhan Bank price can reach defined target.Bandhan Bank Ltd., incorporated in the year 2014, is a banking company (having a market cap of Rs 48988.50 Crore).For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 3943.37 Crore, up 4.10 % from last quarter Total Income of Rs 3787.91 Crore and up 15.82 % from last year same quarter Total Income of Rs 3404.84 Crore. The bank reported net profit after tax of Rs 373.08 Crore in latest quarter.BANDHAN reported higher-than-estimated PAT, supported by margin expansion. This was despite elevated slippages/provisions due to (a) the second COVID wave (which severely impacted the MFI sector) and (b) the disturbance in credit culture due to loan waivers. Restructuring/SMA overdue in the MFI book increased sharply. Provision coverage increased to ~62%, which gives us some comfort. Collection efficiency in the MFI portfolio stood at 86%, with 85% for West Bengal – closer to the rest of India. Overall, asset quality remains uncertain as the pool of restructured/SMA overdue remains high. Thus, the brokerage estimates credit cost to remain elevated at 5.5% of loans for FY22 (similar to FY21 levels).Promoters held 40 per cent stake in the company as of June 30, 2021, while FIIs held 35.4 per cent, DIIs 2 per cent and public and other 22.6 per cent.