Bandhan Bank Surges 5% as CLSA Upgrades to 'High Conviction Outperform'

Bandhan Bank shares soared 4.8% today, reaching an intraday high of Rs 143. This rally follows CLSA's upgrade to 'High Conviction Outperform' with a target price of Rs 220, suggesting a 61% upside. CLSA predicts improvement in the microfinance sector, expecting Bandhan Bank to benefit from this recovery. The bank's shift towards secured lending and expanded product offerings are seen as positive moves. Despite recent challenges, CLSA forecasts a medium-term ROA of 1.5-1.6%. With no immediate capital requirements and an undervalued status, analysts anticipate stock rerating as macroeconomic conditions improve in coming quarters.
Sources: Business Standard, INDmoney,