Sharekhan's research report on IndusInd Bank
IndusInd Bank reported robust performance in terms of operating profit, advances growth and improvement in asset quality. The bank reported a consolidated PAT of Rs. 1,242 crores, beating street expectations which increased by 50% y-o-y, driven by lower provisions. Asset quality improved with GNPA and NNPA ratios declining by 29 bps q-o-q and 9 bps q-o-q to 2.48% to 0.71%, respectively. Further, we believe that with the management addressing concerns on its microfinance book and providing fully for the exposures, the bank is on a speedy growth trajectory, given the revival in the demand for CVs and microfinance loans. . The stock currently trades at a reasonable valuation of 1.3x/ 1.2x of its FY23E and FY24E book value.
Outlook
We maintain a Buy rating with an unchanged PT of Rs. 1,340.
More Info
At 16:00 hrs IndusInd Bank was quoting at Rs 922.05, up Rs 50.20, or 5.76 percent.
It has touched an intraday high of Rs 927.00 and an intraday low of Rs 880.00.
It was trading with volumes of 491,647 shares, compared to its thirty day average of 248,187 shares, an increase of 98.10 percent.
In the previous trading session, the share closed down 3.51 percent or Rs 31.70 at Rs 871.85.
The share touched its 52-week high Rs 1,241.85 and 52-week low Rs 811.10 on 28 October, 2021 and 19 April, 2021, respectively.
Currently, it is trading 25.75 percent below its 52-week high and 13.68 percent above its 52-week low.
Market capitalisation stands at Rs 71,422.63 crore.
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