⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BANDHANBNK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | BANDHANBNK | Market Cap | 26,320 Cr. | Current Price | 163 ₹ | High / Low | 192 ₹ |
| Stock P/E | 26.1 | Book Value | 153 ₹ | Dividend Yield | 0.92 % | ROCE | 7.82 % |
| ROE | 11.9 % | Face Value | 10.0 ₹ | DMA 50 | 166 ₹ | DMA 200 | 162 ₹ |
| Chg in FII Hold | -1.12 % | Chg in DII Hold | 0.94 % | PAT Qtr | 206 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 43.4 | MACD | 1.02 | Volume | 82,99,453 | Avg Vol 1Wk | 1,44,20,058 |
| Low price | 134 ₹ | High price | 192 ₹ | PEG Ratio | 0.15 | Debt to equity | 6.76 |
| 52w Index | 50.2 % | Qtr Profit Var | -51.8 % | EPS | 6.25 ₹ | Industry PE | 14.8 |
📊 Financial Overview
- Revenue & Profitability: PAT improved from 112 Cr. to 206 Cr., but quarterly profit variation (-51.8%) highlights volatility.
- Margins & Returns: ROE (11.9%) is modest, ROCE (7.82%) relatively weak compared to peers.
- Debt: Debt-to-equity ratio at 6.76, high but typical for banks.
- Cash Flow: EPS at 6.25 ₹, modest relative to valuation multiples.
💹 Valuation Metrics
- P/E Ratio: 26.1 vs Industry PE of 14.8 → Overvalued.
- P/B Ratio: Current Price ₹163 vs Book Value ₹153 → Fairly valued.
- PEG Ratio: 0.15 → Attractive, suggesting undervaluation relative to growth.
- Intrinsic Value: Current price slightly above fair value zone.
🏢 Business Model & Competitive Advantage
- Strong presence in microfinance and retail banking.
- Focus on financial inclusion provides niche advantage.
- However, high leverage and modest efficiency metrics limit competitiveness.
📈 Entry Zone Recommendation
- Technicals: RSI at 43.4 (neutral), MACD slightly positive, price near DMA levels.
- Suggested entry zone: ₹140–₹150 for accumulation.
- Long-term holding viable if profitability stabilizes and valuations normalize.
✅ Positive
- Quarterly profits improved sequentially (206 Cr. vs 112 Cr.).
- PEG ratio (0.15) suggests undervaluation relative to growth.
- DII holding increased (+0.94%).
⚠️ Limitation
- ROCE (7.82%) and ROE (11.9%) modest compared to peers.
- High debt-to-equity ratio (6.76).
- P/E ratio (26.1) above industry average.
📉 Company Negative News
- FII holding reduced (-1.12%).
- Quarterly profit variation (-51.8%) indicates volatility.
📈 Company Positive News
- DII holding increased (+0.94%).
- Sequential PAT growth shows recovery momentum.
🏭 Industry
- Industry PE at 14.8, lower than company’s 26.1.
- Banking sector stable with long-term growth potential, but valuations remain sensitive to earnings consistency.
🔎 Conclusion
- Bandhan Bank shows niche strength in microfinance but faces earnings volatility and stretched valuations.
- Efficiency metrics are modest, limiting competitive edge.
- Best strategy: Accumulate in the ₹140–₹150 zone.
- Long-term holding viable only if profitability stabilizes and valuation aligns closer to industry averages.