Bandhan Bank Share Price Jumps As CLSA Gives Record Target With 61% Upside

Shares of Bandhan Bank Ltd. advanced over 4% on Friday, as CLSA upgraded the stock to 'high conviction outperform' from 'outperform', with a target price of Rs 220 per share. This implies an upside of 61% from the previous close.

"Even at an undemanding target multiple of 1.2 times, the stock offers 65% upside," CLSA said.

The Indian microfinance space will go "from bad to less bad" in the coming quarters and from less bad to normal by the second quarter of fiscal 2026, according to the brokerage.

There are early signs of improvement in collection efficiency, CLSA noted. "If this is sustained, it should result in improvement in slippage with a quarter lag." Bandhan Bank is well placed to benefit from this recovery, it said.

The lender's asset quality performance this cycle has been better than peers. Almost the entire management team is new, and there should be no risk of ‘kitchen-sinking’, CLSA said. As the environment improves over the next two quarters, the stock should rerate, according to the brokerage.

Bandhan Bank stock rose as much as 4.77% to Rs 143 apiece, before paring gains to trade 4.1% higher at Rs 142.2 per share, compared to a 0.43% decline in the benchmark Nifty 50 as of 10:05 a.m.

It has fallen 29.09% in the last 12 months. Total traded volume so far in the day stood at 6.7 times its 30-day average. The relative strength index was at 45.27.

Fifteen of the 28 analysts tracking the company have a 'buy' rating on the stock, eight have a 'hold' rating, and five recommend a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 174.1, implying an upside of 22.1%.