Bandhan Bank shares extended gains on Thursday, and rallied to their 52-week high levels on Thursday, on the back of stellar Q1 results. Notably, the latest private sector bank to get listed Bandhan Bank has reported a net profit of Rs 482 crore in the first quarter ending June 2018, registering a jump of 47% on-year. The bank had posted a net profit of Rs 327 crore in the April-June quarter of 2017-18. The bank’s Gross Non-Performing Asset (NPA) increased to 1.26% of gross advances in the quarter under review compared to 0.93% in the comparable period of the last fiscal.
After rallying as much as 8% yesterday, the shares zoomed by nearly 4.5% today to hit an intra-day and 52-week high of Rs 618 on BSE. Commenting on the performance, MD and CEO of the bank Chandra Shekhar Ghosh said, the start of fiscal 2018-19 has been promising with advances growing Y-o-Y by 52%, “overcoming the seasonality, which we normally witness during the first quarter.” Top market voices suggest that the prospects of Bandhan Bank look attractive.
“This is one stock, where the chart still looks pretty good to me and the upfront is still steady. I would suggest revising the stop loss at Rs 540, looking for the next target as Rs 660 and even there if he chooses to hold on, he can take a fresh call over here,” investment analyst Mitesh Thakkar told in an interview to CNBC TV18. On similar lines, another investment advisor Ashwani Gujral pointed out that Bandhan Bank shares can be added on declines.
Earlier the Kolkata-based private sector lender Bandhan Bank had made a stellar debut on the exchanges in March-18, as the shares listed at at Rs 499 on NSE implying a premium of 33% as compared to the issue price of Rs 375. Notably, the India’s biggest banking issue had been subscribed by 15 times backed by strong demand from institutions. Bandhan Bank shares were trading at Rs 614.10 on NSE this afternoon.