Bandhan Bank: A bottom fishing opportunity for long-term investors

Currently the stock is trading 18 per cent lower than its average one-year forward valuation, while return ratios are likely to remain strong

Shreepad S Aute 

Concerns over the near-term impact of its merger with Gruh Finance and the pending promoter stake dilution among others, has weighed on investor sentiment for Bandhan Bank, which had a great listing in March last year. With a fall of over 16 per cent in its share price in the last three months, Bandhan Bank has also underperformed the Nifty Bank index that fell by 9 per cent during the same period.

The correction, however, has led to a sharp fall in the valuation of the bank’s stock. It currently trades at 3.6 times FY21 estimated book value, which is an 18 per cent discount to its ...

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Read our full coverage on Gruh Finance Bandhan Bank
First Published: Mon, September 16 2019. 20:15 IST