Bandhan Bank hits life-time low, stock down 80% in 5 years; Time to buy?

Technical chart shows that Bandhan Bank stock is likely to trade with a bearish bias as long as the stock remains below Rs 132.80; A counter rally can lead to 28% upside; check key levels here

Bandhan Bank stock has witnessed a massive fall of almost 80 per cent from its record high of Rs 628 hit in October 2019, to a new all-time low at Rs 128.15 today. The stock has been one of the most consistent laggards in the last 5.5 years on the BSE and NSE.  So far this year, the stock has slipped over 19 per cent as against a near 3 per cent fall in the benchmark indices - the Sensex and the Nifty.  In the recently concluded December 2024 quarter, Bandhan Bank reported 41.8 per cent decline in net profit to Rs 426.49 crore as against a net profit of Rs 732.72 crore in the corresponding quarter of December 2023. Total income, however, was up 26.2 per cent at Rs 6,574.58 crore on a year-on-year (YoY) basis.  Net interest income (NII) rose by 12 per cent YoY to Rs 2,830 crore in Q3FY25 compared to Rs 2,525 crore in Q3FY24. Net interest margin (NIM) stood at 6.9 per cent as against 7.2 per cent in the year ago period.  Brokerage firm Motilal Oswal revised downwards the earnings expectations on Bandhan Bank by 10.3 per cent in FY25 and 8.5 per cent and 7.1 per cent for FY26 and FY27, respectively, post the Q3 results.    Similarly, Nuvama in its latest market strategy report, recommends an 'Avoid' rating on Bandhan Bank in the banking and financial space. Nuvama believes that deposit growth remains a constraint for most lenders.  Against this background, here's a technical outlook on Bandhan Bank.  Bandhan Bank  Current Price: Rs 128.5  Upside Potential: 28.4%  Downside Risk: 15.2%  Support: Rs 125; Rs 120.80  Resistance: Rs 132.80; Rs 137; Rs 146.  Chart shows that the near-term bias for Bandhan Bank stock is likely to remain bearish as long as the stock trades below Rs 132.80. On the downside, the quarterly Fibonacci chart shows presence of some support around Rs 125 levels; below which a fall to Rs 120.80 and Rs 109 seems likely.  For the trend to turn favourable, the stock will need to break and trade consistently above Rs 137 levels. Following which, a relief rally towards Rs 165 levels can be anticipated with intermediate hurdle at Rs 146. CLICK HERE FOR THE CHART