IndusInd up 2% on strong Q1, Kotak Sec ups price target

Moneycontrol Bureau

IndusInd Bank shares were up 2 percent to Rs 505.25 after the company's first quarter numbers declared Wednesday were better than market expectations.

Brokerage house Kotak Securities has raised its target price for the stock to Rs 530 from 490 and retained its ‘add’ recommendation on the stock, post the earnings,

"Asset quality was stable; however, the most profitable segment, vehicle loans, is showing signs of slowdown. The bank would need to reduce cost of funds materially to maintain margins at current levels, which might be a slower exercise than the Street is factoring, given the unfavorable economic climate," said the Kotak note to clients.

"High treasury gains, used to make floating provisions, sprang a positive surprise providing additional cushion against any likely balance sheet stress. We maintain Add rating and revise target price to Rs 530 (from Rs 490 earlier)," the note said.

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