The asset quality of private sector Bandhan Bank has shown signs of improvement in the December quarter. Now foreign brokerage house Jefferies says that the shares of Kolkata based private sector bank may be re-rated, as the valuation is now very attractive. Shares of Bandhan Bank closed at Rs 246.50, up nearly 2 per cent on Monday. The 52-week low level of the bank’s shares is Rs 209.45. The 52-week high level of Bandhan Bank’s shares is Rs 349.50.
Bandhan Bank shares can reach Rs 340
Foreign brokerage house Jefferies says that Bandhan Bank shares can go up to Rs 340 in the next 12 months with a jump of up to 40%. Jefferies has given Buy rating on Bandhan Bank shares. Banking stocks have been underperforming for the last one year. Bandhan Bank shares have declined 10% in the last one year. In its quarterly update, Bandhan Bank has reported that the collection efficiency of EEB (Emerging Entrepreneurs Business) loans has improved to 98% in the third quarter from 95% in the second quarter.
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Only one expert has given sell rating to the stock
Foreign brokerage house Jefferies says the continuously improving asset quality trend should lead to re-rating of valuations. It should improve further in the next 2-3 quarters. Asset growth has decelerated to 14% year-on-year from 17% in the second quarter. At the same time, CASA has come down to 3% on an annual basis. The valuation of the bank is attractive and its shares may be re-rated. Only 1 analyst out of 22 analysts covering the stock has a Sell rating on Bandhan Bank shares. This has been said in a report of Economic Times. The average share price target for the bank’s shares is Rs 313.3.
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