Bandhan Bank stock jumps 1

Bandhan Bank stock jumps 1.6% as Societe Generale acquires 1% stake for Rs 382 cr; should you buy or sell?

Bandhan Bank share price jumped 1.6% to Rs 228.85 today after the Europe based financial services group Societe Generale bought 1.74 crore shares or 1.08% stake in Bandhna Bank at an average price of Rs 218.6 per share, totalling Rs 382.01 crore via open market transactions on Monday. Meanwhile, Bandhan Bank’s Q1 earnings had missed market expectations, still most brokerages have recommended positive ratings on the stock. Bandhan Bank stock has fallen over 6% in the past one month and 19.5% in the last one year.Should you buy, sell or hold Bandhan Bank stock?

Anand Rathi: Buy – Target Price: Rs 325

Motilal Oswal: Neutral – Target Price: Rs 240

“We reduce our estimates for PAT/PPoP for FY24/FY25 by 5%/3% each. We estimate RoA/RoE to reach 2.3%/~20% in FY25 and reiterate our Neutral rating with a target price of Rs 240 (1.6x FY25E ABV).”

HSIE: Add – Target Privce: Rs 260

“Bandhan Bank had earlier guided for greater focus on retail deposit mobilisation; however, given the scramble for deposits, the bank is likely to face a tight balancing act between sustained investments in franchise building and higher funding costs. We tweak our FY24/FY25 forecasts to account for softer margins; maintain ADD with a revised target price of Rs 260 (1.8x Mar-25 ABVPS).”

Axis Securities: Buy – Target Price: Rs 255

“The stock currently trades at ~1.4x FY25E ABV (vs. the long-term average of ~3.3x P/ABV) and we value the stock at 1.6x FY25E to arrive at a target price of Rs 255/share. The TP implies an upside of 15% from the CMP. We maintain our BUY recommendation on the stock.”