IndusInd Bank up 1% on firm Q2; what are analysts saying?

Moneycontrol Bureau

Shares of IndusInd Bank were up 1.1 percent at Rs 361 after the company reported better-than-expected earnings for the July-September quarter. (Also read:Management interview post results)

Check out what analysts have to say about the stock:

Antique Stock Broking:

We continue to remain a firm believer of bank's growth story, given its well-capitalised position, sound asset quality position and scalable business model. While we retain our assumptions for FY13 (estimated) and FY14e as well as our confidence in the bank's growth story, we feel that at the current price, the stock is fairly valued. Therefore we downgrade our recommendation to ‘hold’ and maintain our price target of Rs 380/share.

Kotak Securities:

2QFY13 was a strong quarter led by healthy revenue growth (26% YoY) and lower provisions (4 percent YoY). Costs have started to decline which should result in healthy NIM expansion from here and provide comfort to any likely rise in stress on the balance sheet. We maintain our positive outlook on the bank. We maintain our ‘add’ rating, revise earnings upwards by 1-5 percent and target price to Rs 380 (from Rs 360 earlier).

Goldman Sachs:

We expect net interest margins to expand by 20bps in 2HFY13E driven by repricing of high cost term deposits partially offset by lower asset yields. We fine tuned our earnings estimates post results and raised our target price to Rs 430 (from Rs 380). We retain our ‘buy’ rating as we expect IndusInd Bank to deliver EPS growth of over 24 percent in the next three years driven by branch expansion, margin expansion on higher CASA, and 36 percent growth in fee income (FY12-FY15).