January 27, 2017 / 16:50 IST
Indian Bank is a mid-sized PSU bank with close to 2617 branches. In four years until FY15, credit traction has been strong at 19% CAGR, way ahead of the industry, growing at 17.4% CAGR. Currently, the book at Rs 125814 crore is well diversified into corporate (46%), MSME (15%), agriculture (19%) and retail (15%).
OutlookWith better earning visibility (PAT CAGR estimated at 51% to Rs 1616 crore in FY17-18E), premium valuations are expected to sustain ahead. Hence, we remain positive on the stock maintaining our growth projection. Accordingly, we revise our target price higher to Rs 305 (earlier Rs 275) as we raise our target multiple to 1.3x FY18E ABV. We maintain our BUY recommendation on the stock.
For all recommendations, click hereDisclaimer: 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. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
