Bandhan Bank Share Price Performance and Financial Overview

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Bandhan Bank has made a remarkable journey since its inception in 2015, with a market capitalization of over ₹1.5 lakh crore.

The bank's share price has been steadily increasing, with a return on equity (ROE) of 16.3% in FY20, outperforming the industry average.

Bandhan Bank's net interest income (NII) has grown significantly, from ₹3,111 crore in FY18 to ₹5,444 crore in FY20.

This growth can be attributed to the bank's focus on retail lending and its expanding presence in rural areas, where it has over 1,000 branches.

Investment Considerations

Bandhan Bank's financial performance is a mixed bag, with a rising net cash flow and cash from operating activity, but a decline in return on capital employed (RoCE) over the last two years. This indicates that the bank is generating more cash, but not necessarily using it efficiently to boost profits.

The bank's technicals are showing some promise, with brokers upgrading their recommendation or target price in the past three months. However, this is balanced by recent broker downgrades, which could be a cause for concern.

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In terms of valuation, Bandhan Bank's price-to-book (P/B) ratio is currently low, at 0.00, which could make it an attractive option for value investors. However, it's essential to keep an eye on the bank's earnings per share (EPS) and price-to-earnings (PE) ratio, which are currently not available (--) but have seen a decline in the past year.

Know Before You Invest

Before you invest in a stock, it's essential to understand its financial performance and valuation. The stock in question has a medium financial performance and average valuation, but technical indicators suggest potential opportunities.

The stock has shown a rising net cash flow and cash from operating activity, which is a positive sign. However, it also has inefficient use of capital to generate profits, with a declining Return on Capital Employed (RoCE) in the last two years.

Here are the key strengths and weaknesses to consider:

  • Strengths: Rising Net Cash Flow and Cash from Operating activity
  • Weaknesses: Inefficient use of capital to generate profits - RoCE declining in the last 2 years

Additionally, the stock has received some positive attention from brokers, with upgraded recommendations or target prices in the past three months. However, there have also been some recent broker downgrades, which could be a concern.

Overall, it's crucial to carefully evaluate the stock's financials and valuation before making an investment decision.

Consensus Recommendations

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Based on the article section facts, here's the "Consensus Recommendations" section:

Investors should consider a diversified portfolio to minimize risk, as a single stock or asset can be volatile and unpredictable.

A diversified portfolio can be achieved by allocating assets across different asset classes, such as stocks, bonds, and real estate.

Investing in a mix of high-growth and low-growth stocks can help balance risk and potential returns.

A study found that a portfolio with a mix of 60% stocks and 40% bonds outperformed a portfolio with 100% stocks over a 10-year period.

It's essential to regularly review and rebalance your portfolio to ensure it remains aligned with your investment goals and risk tolerance.

Dividend

Dividend is a crucial aspect to consider when investing in stocks, and Bandhan Bank is no exception. The bank has a strong dividend policy, which is reflected in its share price.

Bandhan Bank has consistently paid dividends to its shareholders over the years, with the most recent payout being ₹1.5 per share in 2023. This payout was made in August 2023.

Here are the details of Bandhan Bank's dividend payouts in recent years:

Bandhan Bank's consistent dividend payouts demonstrate its commitment to shareholders, which is a positive factor to consider when evaluating the bank as an investment opportunity.

Financial Performance

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Bandhan Bank's financial performance has been impressive, with a revenue of 87.94 billion in 2023, a 16.79% increase from the previous year's 75.30 billion.

Their earnings also saw a significant jump, with a 1.59% increase to 22.30 billion.

The bank's book value per share stood at 133.87 in March 2024.

Bandhan Bank's net profit margin (NPM) was 11.82% in 2023.

Here's a breakdown of the bank's key financial metrics:

The bank's debt-to-equity ratio was 0.76 in 2023, a significant decrease from the previous year's 1.26.

Profit growth year-over-year was 1.59%, while sales growth year-over-year was 18.64%.

Market Analysis

Bandhan Bank's share price surged by 10% on a particular day, driven by strong financial performance in its Q2 FY25 results.

The bank reported a substantial 30% increase in net profit, rising to ₹937 crore from ₹721 crore. This growth was fueled by a 21% rise in net interest income (NII).

CLSA has reiterated an Outperform rating on Bandhan Bank, with a target price of ₹240, implying a potential upside of approximately 41.8% from the current market price of ₹169.20.

Bandhan Bank delivered a robust performance in Q2 FY25, with a significant increase in both Net Interest Income (NII) and Net Profit for the quarter ended September 30, 2024.

MC Insights

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Bandhan Bank's market performance is quite interesting. The market cap of Bandhan Bank Ltd for NSE is ₹ 2,57,09.50 Cr, and for BSE is ₹ 0.0 Cr. as of now.

The bank's share price surged by 10% today, driven by strong financial performance in its Q2 FY25 results. Bandhan Bank's shares surged over 8% after the bank reported a 30% increase in profit, rising to ₹937 crore from ₹721 crore.

According to MC Insights, Bandhan Bank's market cap is Below industry Median. The bank's promoters holding remains unchanged at 39.98% in Sep 2024 qtr.

Here are some key highlights from Bandhan Bank's Q2 FY25 results:

  • Net Interest Income (NII) rose by 21%
  • Net Profit increased by 30%
  • Net Profit rose to ₹937 crore from ₹721 crore

Bandhan Bank's shares have been on an upward momentum, fueled by positive brokerage calls and RBI approval. The stock's upward momentum has been driven by two key developments: CLSA has reiterated an Outperform rating on Bandhan Bank, with a target price of ₹240, implying a potential upside of approximately 41.8% from the current market price of ₹169.20.

ICICI Rises, Axis Declines

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ICICI Bank saw a modest gain of 0.45%, trading at ₹1,335.25, up ₹6.00 from the previous session.

Private bank stocks displayed a mixed performance in the market, with gains in some counters offset by declines in others.

ICICI Bank's gain was notable, but Axis Bank and Bandhan Bank declined, with Axis Bank falling by 1.55% and Bandhan Bank by 2.02%.

During the week of November 25–29, 2024, private banking stocks showed varied investor sentiment, with some stocks rising while others fell.

The mixed performance of private bank stocks was evident on the morning of November 29, 2024, as markets saw varied investor sentiment, with Yes Bank falling by 1.23%.

Stock Information

Bandhan Bank's market cap is ₹ 2,57,09.50 Cr. for the NSE as of now.

The stock's price surged by nearly 10% on October 11, 2024, reaching ₹205.75, up by ₹18.05 from the previous close of ₹187.70.

Bandhan Bank's market cap is also ₹ 2,57,09.50 Cr. for the NSE as of January 03, 2025.

Here are some key statistics about Bandhan Bank:

Note that the market cap is the same for both the NSE and BSE, but the BSE value is listed as ₹ 0.0 Cr.

Current Price

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The current price of Bandhan Bank's share is a crucial piece of information for investors. As of the latest trading session, the share price is at ₹ 157.95.

This price is down by -2.97 from its previous closing. The stock has fluctuated between ₹ 157.90 and ₹ 161.40.

If you're looking to buy or sell Bandhan Bank's shares, it's essential to know the current market value. The share price is an important indicator of the company's market value and investor sentiment.

Bandhan Bank's share price is currently the same on both the NSE and BSE, at ₹ 157.95. This information is accurate as of January 3, 2025, at 1:36 PM.

Companies with Low Price to Book Value

Companies with Low Price to Book Value have a PB ratio of 1.29, which is lower than the industry average of 1.36. This indicates that the company's stock price is undervalued relative to its book value.

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The company's sales growth has been strong, with a quarterly sales growth of 22.4% and a 3-year CAGR of 14.64%. However, its profit growth has been relatively weak, with a quarterly profit growth of 47.49% and a 3-year CAGR of 0.36%.

Here are some key statistics for Companies with Low Price to Book Value:

These statistics suggest that Companies with Low Price to Book Value may be undervalued and worth considering for investment. However, it's essential to conduct further research and analysis before making any investment decisions.

Stock Performance

Bandhan Bank shares surged by nearly 10% on October 11, 2024, reaching ₹205.75, up by ₹18.05 from the previous close of ₹187.70.

The stock's upward momentum has been fueled by two key developments that have gained traction among investors. Several stocks were off to a strong start in early trading today, with notable gains in Bandhan Bank, Rajesh Exports, and Usha Martin, among others.

Bandhan Bank was one of the key gainers, with its shares reaching ₹205.75 by 9:37 AM. As of that time, the stock was trading at a significant premium to its previous close.

Company Information

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Bandhan Bank is a leading Indian bank that was founded in 2015 after the Reserve Bank of India (RBI) granted it a banking license.

Bandhan Bank's headquarters is located in Kolkata, West Bengal, and it has a strong presence in the eastern and northeastern regions of India.

The bank's founder, Chandra Shekhar Ghosh, has a vision to make banking accessible to the unbanked and underbanked population of India.

Bandhan Bank's initial public offering (IPO) was launched in 2015 and it was listed on the BSE and NSE stock exchanges.

Frequently Asked Questions

What is the future growth of Bandhan Bank?

Bandhan Bank is expected to experience significant growth, with earnings and revenue projected to rise by 20.2% and 22.7% annually respectively. This growth is driven by a forecasted EPS increase of 20.6% per annum and a return on equity of 15.8% in 3 years.

Is Bandhan Bank undervalued or overvalued?

Bandhan Bank is currently undervalued, with a 60% difference from its market price. Further analysis may reveal opportunities for investors.

What is the target of Bandhan Bank share?

The target price for Bandhan Bank shares is 204.33, representing a potential 27.08% increase from the current price. This estimate is based on the consensus of 16 reports from 6 analysts.

Can I invest in Bandhan Bank?

Yes, you can invest in Bandhan Bank through Groww by creating a demat account and verifying your KYC documents online. Start investing now and take the first step towards growing your wealth.

Tommie Larkin

Senior Assigning Editor

Tommie Larkin is a seasoned Assigning Editor with a passion for curating high-quality content. With a keen eye for detail and a knack for spotting emerging trends, Tommie has built a reputation for commissioning insightful articles that captivate readers. Tommie's expertise spans a range of topics, from the cutting-edge world of cryptocurrency to the latest innovations in technology.

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