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Last Updated : Oct 17, 2019 10:12 AM IST | Source: Moneycontrol.com

Bandhan Bank falls 5% after Macquarie raises concern over valuation

"At 5.1 times forward PBV (price to book value), there is no margin of safety," said Macquarie, adding that the material bump-up in ticket sizes in some geographies is an area of concern.

 
 
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Shares of Bandhan Bank fell almost 5 percent in early trade on October 17 after foreign brokerage firm Macquarie said it has a high conviction non-consensus 'underperform' view on the bank.

The brokerage said at the stock's target price of Rs 425 is about 30 percent lower than the current market price.

The brokerage said it remains uncomfortable with Bandhan Bank at current levels. "At 5.1 times forward PBV (price to book value), there is no margin of safety," said Macquarie, adding that the material bump-up in ticket sizes in some geographies is an area of concern.

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The review has come at the time when the stock was included in the MSCI index under the largecap segment on October 16.

Meanwhile, the bank has said it will announce its September quarter numbers on October 24.

Shares of Bandhan Bank traded 2.06 percent lower at Rs 571.75 on BSE around 1005 hours.

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First Published on Oct 17, 2019 10:12 am
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