How to trade Bandhan Bank stock after Q1 results? Here's what brokerages recommend
Bandhan Bank reported weak June quarter earnings on Friday, several top brokerages have come out with their views on the stock. While Nomura, CLSA and Kotak Institutional Equities put a ‘Buy’ rating on the stock, Nuvama recommended a ‘Hold’ call on the counter. Bandhan Bank's standalone net profit fell 19% to Rs 721 crore for the first quarter ended June.
The same stood at Rs 886 crore in the year-ago period. The fall in profit was steeper than expected as most analysts saw the decline to be around 14%. For instance, Axis Securities expected the net profit figure to be around Rs 758 crore.
The bank's net interest income came in at Rs 2,491 crore in the first quarter, marginally down, compared with Rs 2,514 crore in the same quarter last year. This is what top brokerages recommend:Nomura: Buy | Target: Rs 270 Nomura maintained a 'Buy' rating on Bandhan Bank for a price target of Rs 270. Q1 was a weak quarter for the private lender.
PAT (Profit After Tax) beat aided by lower PCR. NPLs pick-up in 1QFY24, with lower PCR. Pick-up in growth outlook is essential for re-rating. CLSA: Buy | Target: Rs 290 Foreign brokerage CLSA has a 'Buy' view on the counter and has put the price target at Rs 290.
Q1 was a tough quarter but a gradual recovery is expected. A large increase in MFI NPAs partly driven by a regulatory reclassification. The brokerage marginally cut estimates by 3%-6% as it factors in slower growth. Kotak Institutional Equities: Buy: | Target: Rs 260 Bandhan Bank reported a weak performance on asset quality metrics with high slippages in MFI.
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