BANDHANBNK - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.4

📉 Bandhan Bank shows weak technical momentum and earnings pressure, but fair valuation and sector support. Entry near ₹150 is optimal. If already held, consider exiting around ₹165–₹170.

📈 Positive

• 📊 ROE of 11.9% and ROCE of 7.82% reflect moderate profitability.
• 💰 EPS of ₹7.62 and Dividend Yield of 0.96% offer reasonable returns.
• 📈 Book Value of ₹153 is close to current price, suggesting fair valuation.
• 📈 DII holding increased by 1.30%, indicating domestic institutional confidence.
• 📉 PEG ratio of 0.12 implies undervaluation relative to growth potential.

⚠️ Limitation

• 📉 RSI at 39.0 and MACD at -0.69 indicate bearish momentum.
• 📉 Trading below DMA 50 and DMA 200 confirms technical weakness.
• 📉 Quarterly PAT dropped from ₹372 Cr. to ₹112 Cr. (↓70%).
• 📉 FII holding declined by 0.90%, showing reduced foreign confidence.
• 📉 Debt-to-equity ratio of 6.76 is high, typical of banks but adds risk.

📉 Company Negative News

• 📉 Profitability impacted by higher provisioning and asset quality concerns.
• 📉 Analysts flagged weak Q2 performance and margin pressure.

📈 Company Positive News

• 📈 Bandhan Bank continues to expand its retail and MSME lending footprint.
• 📈 Management expects recovery in H2 FY26 driven by digital initiatives and rural demand.

🏦 Industry

• 🏦 Banking sector remains strong with rising credit demand and improving NPA trends.
• 📊 Industry P/E of 14.6 reflects conservative valuation across peers.

✅ Conclusion

• 📉 Bandhan Bank is a cautious swing trade candidate with fair valuation but weak technicals and earnings pressure.
• 📉 Optimal entry price: ₹150–₹152 (near support and below DMA 50).
• 📈 Exit target: ₹165–₹170 (near DMA 200 and resistance zone).
• 📌 Watch for RSI recovery above 45 and MACD crossover before entry.

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