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Last Updated : Oct 16, 2019 04:00 PM IST | Source: Moneycontrol.com

Buy IndusInd Bank; target of Rs 1400: ICICI Direct

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.

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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.


Outlook


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


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First Published on Oct 16, 2019 04:00 pm
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