Bandhan Bank shares worth a buy after 5 years of de-rating? Target prices
MOFL said Bandhan Bank has undergone a long-drawn NPA cycle, which significantly impacted its growth and profitability profile.
- Jan 23, 2026,
- Updated Jan 23, 2026 9:44 AM IST
Bandhan Bank Ltd shares climbed 2 per cent in Friday's trade, even as brokerages were mixed on its prospects amid five years of valuation de-rating. Brokerages such as MOFSL and JM Financial have upgraded the stock's rating, Nirmal Bang Institutional Equities and Nuvama cut their target prices, citing a few overhangs.
MOFL said Bandhan Bank has undergone a long-drawn NPA cycle, which significantly impacted its growth and profitability profile. As a result, the bank delivered a tepid 8 per cent average return on equity (RoE) over the past five years. With asset quality regaining normalcy and margins stabilising, it expects operating performance to recover in the coming quarters.
While Nirmal Bang Institutional Equities acknowledged NIM and asset quality improvement, it said the stock will see an overhang in the near-to-medium term due asset quality of the EEB (Emerging Entrepreneurs Business) portfolio, which will be a key watch. Besides, it said margins will be under pressure due to lower loan growth, business mix change toward secured assets, and cut in lending rates. This brokerage suggested a target of Rs 153 on the stock.
At 9.43 am, the stock was trading 2.73 per cent higher at Rs 146.55.
MOFSL, on the other hand, said valuations, after five years of de-rating, look reasonable, and accordingly, it upgraded its rating to 'Buy' with an unchanged target price of Rs 175. "Although we remain watchful of forthcoming West Bengal elections, we strongly believe that the current risk-reward is favorable," it said.
Given current valuation of 0.7 times FY28 book value, JM Financial said downside looks limited for Bandhan Bank. "Hence, we upgrade the stock to ADD with revised target price of Rs 160, valuing it at 0.8 times of FY28 BVPS," it said.
This brokerage believes the recent clean-up of its stressed portfolio led to reduction in non-performing assets. However, fresh slippages from MFI segment continues to remain elevated at 7.3 per cent, which requires close monitoring, it said. Nuvama maintained ‘Reduce’ due to weak profitability. It cut its target price to Rs 133 from Rs 155. The bank now offers flexible repayment options to its borrowers (higher tenor and fortnightly collection). West Bengal contributes 42 per cent to the EEB portfolio," it said.
Bandhan Bank Ltd shares climbed 2 per cent in Friday's trade, even as brokerages were mixed on its prospects amid five years of valuation de-rating. Brokerages such as MOFSL and JM Financial have upgraded the stock's rating, Nirmal Bang Institutional Equities and Nuvama cut their target prices, citing a few overhangs.
MOFL said Bandhan Bank has undergone a long-drawn NPA cycle, which significantly impacted its growth and profitability profile. As a result, the bank delivered a tepid 8 per cent average return on equity (RoE) over the past five years. With asset quality regaining normalcy and margins stabilising, it expects operating performance to recover in the coming quarters.
While Nirmal Bang Institutional Equities acknowledged NIM and asset quality improvement, it said the stock will see an overhang in the near-to-medium term due asset quality of the EEB (Emerging Entrepreneurs Business) portfolio, which will be a key watch. Besides, it said margins will be under pressure due to lower loan growth, business mix change toward secured assets, and cut in lending rates. This brokerage suggested a target of Rs 153 on the stock.
At 9.43 am, the stock was trading 2.73 per cent higher at Rs 146.55.
MOFSL, on the other hand, said valuations, after five years of de-rating, look reasonable, and accordingly, it upgraded its rating to 'Buy' with an unchanged target price of Rs 175. "Although we remain watchful of forthcoming West Bengal elections, we strongly believe that the current risk-reward is favorable," it said.
Given current valuation of 0.7 times FY28 book value, JM Financial said downside looks limited for Bandhan Bank. "Hence, we upgrade the stock to ADD with revised target price of Rs 160, valuing it at 0.8 times of FY28 BVPS," it said.
This brokerage believes the recent clean-up of its stressed portfolio led to reduction in non-performing assets. However, fresh slippages from MFI segment continues to remain elevated at 7.3 per cent, which requires close monitoring, it said. Nuvama maintained ‘Reduce’ due to weak profitability. It cut its target price to Rs 133 from Rs 155. The bank now offers flexible repayment options to its borrowers (higher tenor and fortnightly collection). West Bengal contributes 42 per cent to the EEB portfolio," it said.