Stock To Buy: Bank Stock Hits 10% Upper Circuit As Jefferies Upgrades TP To Rs 240

Bandhan Bank Ltd shares today gained 11.77% till 1:04 pm on BSE and hit upper circuit as well when the stock price rose to Rs 211.65. Bandhan Bank shares also witnessed 4.72% spurt in volume too. Earlier on Friday, Bandhan Bank announced a 47% jump in its consolidated net profit to Rs 1063 crore for Q1 ended June 30, 2024 as against Rs 721 crore net profit declared in the corresponding quarter of last year. Meanwhile, global brokerage firm Jefferies upgraded Bandhan Bank shares to buy from underperform and raised the target price to Rs 240 per share from Rs 165 per share recommended earlier. Bandhan Bank shares gained over 9% in last 1-week and soared 18% in last 3-months. In last 1-year, Bandhan Bank shares declined less than 1% and slipped over 21% in last 2-years. Life Insurance Corporation Of India (LIC) has 3.69% stake in Bandhan Bank with 59,455,863 shares of the company. Check key details pertaining to the bank stock below:

Bandhan Bank Financials: The bank on Friday announced its net interest income or NII for June 2024 quarter surged 21% year-on-year to Rs 3005 crore as against Rs 2,491 declared in the corresponding quarter of last year. The lender's operating profit soared 24% YoY to Rs 1941 crore in Q1 FY2025 as compared to Rs 1562 crore in the corresponding quarter of last year. Meanwhile, total deposits declared at Rs 1.33 lakh crore as of June 2024 as compared to Rs 1.08 lakh crore in the previous year, up 23% YoY and down 1.5% quarter-on-quarter.

Provision coverage ratio for June 2024 quarter declared at 73.7% as compared to 71.8% in the previous quarter.

Jefferies, Other Analysts Recommend Buy Call: Brokerages sought to upgrade ratings and increased target prices amid improved asset quality, robust loan growth, and better topline growth. Jefferies has maintained an outperform rating on Bandhan Bank and stated, "Bandhan Bank's Q1 results showcased strong asset quality and profit ahead of estimates due to lower credit costs and better topline growth. We are raising FY25 profit estimates by 15 percent and FY26-27 estimates by 6%."

Nuvama Institutional Equities recommended hold call for Bandhan Bank with a target price of Rs 200/ share. The analyst commented that the Q1 profit managed to beat but remained cautious on the lender's lower capital.

Axis Securities decided to increase FY25 and FY26 PAT estimates by 9% and 7%, respectively, building in higher growth and lower credit cost. The brokerage raised its target price on Bandhan Bank to Rs 195 but maintained reduce call.

Bandhan Bank Share Performance: The 52-week high price of Bandhan Bank shares on BSE is Rs 263.15 per share (as on 04/01/2024) and 52-week low price is Rs 169.45 per share (as on 04/06/2024), respectively. The company has a market capitalisation of Rs 34,925.83 crore. Bandhan Bank shares zoomed 9.60% in last 1-week, soared 11% in last 2-weeks, jumped 18% in last 3-monhts, and declined less than 1% in last 1-year. In last 2-years, Bandhan Bank share declined 21% and fell 11% year-to-date.

Bandhan Bank Dividend History: Bandhan Bank announced 4 dividends since July 12, 2018. In last 1 year, Bandhan Bank announced an equity dividend amounting to Rs 1.50 per share. At the current share price of Rs 217.60, Bandhan Bank offers dividend yield of 0.69%.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.