Long Term Bet - Bandhan Bank Ltd

25 авг.

Bandhan Bank was once everyones portfolio favourites and have been a patience tester for its investors.
Currently stock price is trading at multiyear support zone and have formed falling wedge pattern around its support, gives good Risk to Reward Ratio.
Company is trading at PE of 12.6 which is slightly above industry PE of 12.
Company has declared good results as compared to previous quarter.
Although big concern from previous quarter result is that company's NPA and GNPA have increased which is red flag, but other factors have shown good growth.
Stock Price CAGR of last 5 years is -16% where as compounded sales growth has been 23%, also profit growth is low but still positive for last 5 years. This may be soon show value unlocking.
Company has good FII holding of around 27% which has decreased from last quarter but positive side is DIIs have increased the stake in the company from last quarter.
FIIs have been continuous sellers in overall market but this has not impacted our market, we have been reaching new highs due to good domestic institutions and retail buying power. Hoping same case would be in this stock as well.
This Stock may show good upside but can test our patience but it should be in our portfolios at this level.
Major resistance have been marked in the chart itself. Personally I am looking at this stock as investment once the breakout is done. May touch 400 till end of next year.

Please do your analysis based on your risk management and patience level before taking any trade.
Happy Investing..