Moneycontrol
Last Updated : Sep 18, 2018 04:59 PM IST | Source: Moneycontrol.com

Accumulate IndusInd Bank; target of Rs 2033: KR Choksey

KR Choksey recommended accumulate rating on IndusInd Bank with a target price of Rs 2033 in its research report dated July 11, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

KR Choksey's research report on IndusInd Bank

Advances grew by 29% yoy/4% qoq to INR 1507 bn, led by 30.4% growth in corporate banking and 28% growth in consumer finance. NIMs at 3.92% contracted by 5 bps points largely due to increase in cost of funds. The banks expects NIMs to be in the range of 3.9-4% going forward. NII at INR 21.2 bn grew by 20% yoy/6% qoq (in line with expectations) while non-interest income at INR 13 bn was up 12% yoy. Fee income at INR 11.7 bn grew by 20% yoy. Opex growth came in lower than income growth, resulting in PPOP of INR 19.1 bn, +20% yoy/+8% qoq.

Outlook

Overall improvement in the credit book profile should translate into lower credit costs. We expect bank to deliver ROE of 17.6%/18.7% in FY19/20E. We value the bank at 4.5x FY19E ABV of INR 452 per share, translating into a target price of INR 2,033 per share. We recommend ACCUMULATE.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Jul 13, 2018 05:09 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant