Analysts having coverage on the stock have mixed views on the stock with those bullish projecting an upside potential of up to 24% and the bears projecting a downside of up to 27%.
Shares of Bandhan Bank are up 27% so far in April, marking their best monthly performance since June 2020, when the stock had jumped 47%.
While CLSA, Jefferies, are positive on the stock, UBS and JPMorgan are “neutral” despite a modest increase in their respective price targets, and Macquarie has an “underperform” rating on the private lender.
CLSA
The brokerage has an “outperform” rating on Bandhan Bank and has raised its price target higher to ₹220 from ₹190 earlier, indicating an upside potential of 23.6% from its previous closing price.
It said this was the second good quarter for the lender after several tough ones since mid-2024.
The brokerage cited a meaningful improvement in asset quality as a key highlight for Bandhan Bank’s quarter, along with the sharp beat in credit costs, which was driven by a 100 basis points improvement in the net slippage ratio.
Going ahead, the management has targeted loan growth to be between 14% to 15%, along with a steady mix. It also expects margins to improve by another 10-20 basis points over the next two to three quarters.
Jefferies
The brokerage has also maintained its “buy” rating on Bandhan Bank with a price target of ₹215 apiece.
Jefferies said stability in the MFI sector and trends in election-bound states are supporting credit quality. This, along with scope for expansion in NIM should aid turnaround in Bandhan Bank’s earnings over FY27-28.
The brokerage said it has tweaked its estimates to factor in the fourth quarter results, but are tad conservative compared to the management guidance given volatility in this sector.
UBS
UBS has a “neutral” rating on Bandhan Bank, but has raised its price target to ₹200 apiece from the previous ₹180.
The management is aiming for an FY27 exit return on assets (RoA) to be between of 1.6% – 1.8%.
UBS believes the stock’s current valuation prices in a large part of the asset quality improvement and sees limited upside from current levels. The stock is trading at 1x its estimated FY27 price-to-book value.
JPMorgan
The brokerage also has a “neutral” rating on Bandhan Bank and has raised its price target to ₹157 apiece from the previous ₹133.
It said the company’s core performance missed estimates in the fourth quarters, and the asset quality improvement supporting return on asset expansion, will be key to sustain.
While Bandhan Bank’s strategic pivot is underway and guidance for 1.6% – 1.7% of RoA by FY27-end is positive, the trend has been very volatile historically, JPMorgan said.
The brokerage is awaiting more visibility on sustainability of the ongoing recovery, especially in light of the ongoing macroeconomic headwinds.
It has raised its forecasts for FY27 and FY28 by 17% and 2%, respectively.
Macquarie
The brokerage has an “underperform” rating on the stock with a price target of ₹130 apiece, indicating a downside of 26.9% from its previous close.
It said the lender’s PAT beat estimates driven by lower credit costs. The bank’s slippages were moderate and loan growth picked up pace.
Lower borrowings costs support NIM expansion, the brokerage stated.
It called Bandhan Bank’s management guidance for FY27 as “ambitious” and said that consistent performance is needed for a possible re-rating.
Of the 28 analysts who have coverage on the stock, 16 have a “buy” rating, eight have a “hold” rating and four have a “sell” rating.
Shares of Bandhan Bank were up 13.8% at ₹203.36 apiece at 12.50 pmon Wednesday. The stock has gained 43.9% in the past month.
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