Bandhan Bank - +47% quarterly profit
A private bank with only 1.54 price-to-book value and highest net profits.
Company name - Bandhan Bank Ltd.
Last closing price(NSE:BANDHANBNK) - ₹207.1 (as on 13-Sep-2024)
Estimated reading time - 3 minutes
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Executive Summary
Incorporated in 2014, Bandhan Bank is a private sector bank focused on serving underbanked and under-penetrated markets in India.
Quarterly results - EPS increased by 37.5% and net NPA(Non-Performing Assets) improved by 47%.
The price to book value for peers is between 2 to 3, whereas for Bandhan Bank it’s currently 1.54. This shows a potential for market cap to grow.
Stock price chart
Detailed analysis
About the company
Incorporated in 2014, Bandhan Bank is a private sector bank focused on serving underbanked and under-penetrated markets in India.
The company has a PAN-India presence and offers a wide range of banking products & services and asset & liability products and services designed for micro banking and general banking.
Financial analysis
Overview
The promoter holding is 40% and the the pledged percentage is 0%.
Price to book value(PBV) is only 1.5.
Quarterly results
Growth in key metrics in the latest quarter Q1 - 2025 compared to the last year’s same quarter -
The net profit increased by 47%
EPS increased by 37.5%
Net NPA(Non-Performing Assets) improved by 47%.
Annual results
Growth in key metrics in the last financial year 2024 compared to the previous financial year -
The net profit reported in FY 2024 was muted at +1.5% but the TTM(Trailing-twelve-months) net profit is already trending at +15.3%. This is highest in the last 4 years, and expected to cross highest ever in the current FY.
The TTM EPS is at the highest in 4 years at 15.97 (+15.4%)
Peer comparison
The quarterly profit growth of 47.49% is second highest among peers.
The price to book value for peers is between 2 to 3, whereas for Bandhan Bank it’s currently 1.54. This shows a potential for market cap to grow.
Timing analysis
Institutional volume signs seen in the week of 29th July(4x) and 26-Aug(3x).
The private banks sector seems to be showing signs of strength currently. IDBI Bank which we covered on 4th Sep moved up 7.9% yesterday.
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Disclaimer
This is not a stock recommendation. It’s an analysis of the stock basis the data available today, and the viewpoint can change in future.
Credits : Financial data source - screener.in