Analysts expect 59% upside in this banking stock
The brokerage adds that Bandhan Bank has been building provisioning buffers on the back of its strong operating profitability to absorb asset quality accidents and reduce earnings volatility.
Emkay Global holds a positive view on Bandhan Bank. The brokerage sees an upside of 59% in the share price of the bank from its current market price of ₹315. The brokerage has set a target price of ₹500 for Badhan Bank in next 12 months. "We believe that the MFI business is inherently prone to disruptions, be it political or natural adverse events. Being well cognizant of these eventualities, the Bandhan Bank has adopted a strategy to diversify geographically in the MFI business and venture into other products, including relatively secured mortgages, gold loans and so on. However, this transition will take time," says Emkay Global Financial Services.
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