Should you buy, sell or hold Bandhan Bank shares after lender's mixed Q4 show?

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 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.  

 

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.   

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 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. 

 

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.