Bandhan Bank shares fall 8%

Bandhan Bank’s shares fell by 8% on Tuesday, hitting a new 52-week low, while BSE Bankex constituents remained mostly flat. This marks the third day of losses for the scrip, which has fallen 14% during this period and is now trading at levels last seen in April 2020.

The stock fell by 7.86% to hit a low of Rs 182.20 on BSE and has fallen 14.25% in three sessions. As of writing, the counter had sell orders of 18,35,451 shares against 8,47,804 shares, and turnover stood at Rs 274 crore.

Emkay Global’s latest note suggests that Bandhan Bank, which they have a ‘Buy’ rating on, is expected to log a better fourth quarter and could attract alpha-seeking investors. However, the private sector lender recently reported a 66% drop in net profit to Rs 290.60 crore year-on-year due to a decline in net interest margin. The bank’s gross NPAs stood at Rs 6,964.8 crore as of December 31, which was higher than Rs 6,853.9 crore at the end of September, but lower than Rs 9,441.60 crore in the year-ago quarter.

Nirmal Bang Institutional Equities has a ‘Buy’ rating on the stock, with a lower target of Rs 292 compared to Rs 324 earlier. Meanwhile, Kotak Institutional Equities has a buy rating on Bandhan Bank, along with IndusInd Bank, Karur Vysya Bank, and DCB Bank, on its midcap banking list.

They have a revised target of Rs 250 from Rs 270. According to Trendlyne, the scrip has an average target of Rs 308 based on 23 analyst recommendations, which suggests a potential upside of 68% on the counter.