Buy Indian Bank; target of Rs 206: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research is bullish on Indian Bank and has recommended buy rating on the stock with a target of Rs 206 in its October 22, 2012 research report.

“Indian Bank established on 15th August 1907 as part of the Swadeshi movement & serving the nation with a team of over 18782 dedicated staff. As on June 30, 2012, the Bank’s distribution network increased by 7 branches to 1953 branches comprising 521 Rural, 553 Semi Urban, 499 Urban and 380 Metropolitan branches, besides 33 Extension Counters, 23 Satellite Offices and 61 Rural Banking Service Centers. These are complemented by 1287 ATMs, which include 359 offsite ATMs and 86 Biometric ATMs for extending 24x7 services to Self Help Groups. Indian Bank has 97 Forex Authorised branches inclusive of 1 Specialised Overseas Branch at Chennai exclusively for handling forex transactions arising out of Export, Import, Remittances and Non Resident Indian business. 62 Special SME Branches extending finance exclusively to SSI units.”

“Indian Bank continues to show strong performance in terms of growth with robust NPA recovery, the Bank’s Operating Profit and Net Profit have also shown healthy growth. The Indian bank net profit up by Rs. 34103.82 million as against Rs. 30348.15 million in the corresponding quarter ending of previous year, an increase of 12.38 %. Revenue for the quarter rose 5.97 % to Rs. 4966.80 million from Rs. 4686.92 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 11.56 a share during the quarter, registering 5.97% an increase over previous year period. Net Interest Income is Rs. 14836.92 millions as against Rs. 14776.82 millions in the corresponding period of the previous year.”

“At the current market price of Rs.184.15, the stock P/E ratio is at 4.13 x FY13E and 3.81 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs. 44.54 and Rs.48.36 respectively. Net Income and PAT of the company are expected to grow at a CAGR of 23% and 7% over 2011 to 2014E respectively. On the basis of Debt Equity ratio, the stock trades at 11.53 x for FY13E and 11.15 x for FY14E. Price to Book Value of the stock is expected to be at 0.64 x and 0.55 x for FY13E and FY14E respectively. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 206 for medium to long term investment,” says Firstcall Research reports.

Institutional holding more than 40% in Indian cos

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