Bandhan Financial institution shares sink over 2% as web revenue falls by 65%; must you purchase or promote?

Bandhan Financial institution shares declined 2.36 per cent on Monday, closing at Rs 182.61, after the financial institution reported a 65 per cent drop in web revenue to Rs 372 crore for the primary quarter of FY26 on Friday. Following this growth, must you purchase or promote the inventory? Here’s what analysts at international brokerages say:

Bandhan Financial institution Q1 FY26 monetary highlights

• Internet Revenue: Rs 372 crore, down 65 per cent from Rs 1,063 crore in Q1 FY25
• Whole Earnings: Rs 6,201.49 crore, up from Rs 6,081.73 crore in the identical quarter final yr

Regardless of the sharp decline in revenue, a number of international brokerage companies are optimistic on the financial institution’s inventory.

2 brokerages suggest shopping for Bandhan Financial institution shares — Notice down targets

Analysts at Jefferies and CLSA have advisable shopping for Bandhan Financial institution shares for long-term goal costs of Rs 215 and Rs 220, respectively.

Jefferies famous that the financial institution’s revenue of Rs 400 crore exceeded expectations. Nonetheless, the brokerage additionally cautioned that stress within the microfinance (MFI) section stays elevated. Moreover, the financial institution’s mortgage progress got here primarily from safer however lower-margin segments, placing stress on the Internet Curiosity Margin (NIM), it mentioned.

CLSA referred to as the Q1 efficiency ‘blended’ and highlighted that:

• Enchancment in slippages
• Development within the Particular Point out Account (SMA) ebook
• Mortgage ebook contraction because of continued challenges within the MFI section

Macquarie, JP Morgan have blended views; try scores

Macquarie has maintained an ‘outperform’ ranking on the personal lender inventory with a goal value of Rs 210. The brokerage famous that elevated slippages and better write-offs have pushed up credit score prices, and expects NIM to stay below stress within the close to time period.

In distinction, JP Morgan has retained a ‘impartial’ stance with a goal value of Rs 155. The agency additionally mentioned that:

• NIM and Pre-Provision Working Revenue (PPOP) margins are prone to keep below stress for the following few quarters
• A mortgage combine shift in direction of secured lending over microfinance might decrease yields
• Administration steerage means that credit score prices and NIM might stay weak in Q2, with a possible restoration in H2 FY26

(Disclaimer: The views/options/suggestions expressed right here on this article are solely by funding specialists. Zee Enterprise suggests its readers seek the advice of their funding advisers earlier than making any monetary resolution.)