Hold Bandhan Bank; target of Rs 400: ICICI Direct

ICICI Direct recommended hold rating on Bandhan Bank with a target price of Rs 400 in its research report dated July 16, 2020.

July 20, 2020 / 01:13 PM IST
 
 
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ICICI Direct's research report on Bandhan Bank


Bandhan Bank reported a reasonable performance. Moratorium improved from 71% in April to 24% as of July 3, 2020 with micro finance portfolio down from 100% in April 2020 to 30%. Mortgage book witnessed marginal increase in moratorium at 15%; up 200 bps. MSME portfolio saw an improvement at ~18% of advances under moratorium (35% in April 2020) and NBFC-MFI revived to zero moratorium vs. ~59% in Q4FY20.



Outlook


Accordingly, we revise our target price to Rs 400 per share, valuing the stock at ~15.8x FY22E EPS (3.1x FY22E BV). With the recent upswing in stock price, we downgrade our rating to HOLD.





For all recommendations report, click here


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first published: Jul 20, 2020 01:13 pm

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