Accumulate IndusInd Bank; target of Rs 750: ABMoney

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26 Aug, 2025 12:21

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Aditya Birla Money's report on IndusInd Bank

"Indusind Bank is expected to continue to deliver 25%+ PAT growth for atleast next couple of years. Its Planning cycle 3 targets to achieve credit growth of 25-30% for FY14-17E, CASA ratio of 35%+, Fee growth to exceed loan growth, to double its branch network and customer base. Besides, NIM is expected to be atleast maintained at current level of 3.6% and also has the trigger for further improvement which shall support the NII and profit growth. Overall, we estimate PAT to grow at 28% CAGR from Rs 14080 mn in FY14 to Rs 23034 mn in FY16E. Besides, the bank is well capitalised with tier 1 ratio of 12% which provides comfort. The return ratios to remain strong with RoA of 2% and RoE of 19.8% by FY16E. We believe the valuations are likely to stay rich on the back of steady earnings visibility. We value the bank at 3.2x FY16E ABV to arrive at a target price of Rs 750 implying an upside of 5.6%. Recommend Accumulate rating on the stock", says Aditya Birla Money research report.

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