This banking stock soared over 4 per cent after receiving an upgrade from CLSA. Do you own it?

CLSA Asia-specific markets upgraded the bank to “buy” from “outperform”, primarily due to attractive valuations

On Tuesday, shares of Bandhan Bank soared 4.30 per cent to close at Rs 234.20. the scrip witnessed a massive spurt in volume by more than 4.11 times.

CLSA Asia-specific markets upgraded the bank to “buy” from outperform, primarily due to attractive valuations. In a note to its clients, at a valuation of 1.6 times its expected earnings for FY24, the stock looks cheap. Bandhan Bank is expected to start the credit card business on its own during the next financial year. The credit demand at the bank is supposed to increase because of the ongoing wedding season.

In Q2FY23, the company reported a standalone total income of Rs 4249.87 crore, which is 15.72 per cent up from the corresponding quarter last year. The bank reported a net profit of Rs 209.27 crore. The bank’s finance division achieved the best-ever growth of 32 per cent YoY and the retail division grew 112 per cent from a year ago.

Incorporated in 2014, Bandhan Bank is a commercial bank focused on serving underbanked and underpenetrated 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.

The stock is up by 9,39 per cent in the last 5 trading sessions while the BSE Sensex is up by 1.91 per cent in the last five trading sessions. Investors should keep a close eye on this banking stock.