ICICI Direct is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 1400 in its research report dated October 11, 2019.
ICICI Direct's research report on IndusInd Bank
IndusInd Bank’s operational performance continued to remain steady, led by healthy NII growth & other income growth of 32% & 31% YoY to Rs 2910 crore & Rs 1727 crore, respectively. Margins improved marginally by 5 bps to 4.10% largely attributable to a decline in cost of funds. Provision for the quarter were at Rs 738 crore, up 71% QoQ. Accordingly, PAT came in at Rs 1384 crore, up 50%. However, benefits due to corporate tax cut were utilised to create floating provision of Rs 355 crore and shore up PCR.
Therefore, we upgrade the stock from HOLD to BUY with a target price of Rs 1400 (earlier Rs 1605) valuing the stock at ~2.3x FY21E ABV. Leadership succession is on the cards. Top internal candidate being considered should address investor concerns.
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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.