Buy IndusInd Bank; target of Rs 1450: Motilal Oswal

Motilal Oswal is bullish on IndusInd Bank recommended buy rating on the stock with a target price of Rs 1450 in its research report dated April 24, 2023.

Broker Research

April 25, 2023 / 14:16 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on IndusInd Bank

IndusInd Bank (IIB) reported an in-line 4QFY23 performance with PAT at INR20.4b (up 46% YoY) and steady operating performance across all metrics. Loan growth was healthy at 21% YoY with traction in both Corporate and Consumer Finance books. Within consumer, growth was broad based barring 2Ws and LAP. MFI loans reported a healthy sequential pick up. Fresh slippages increased slightly to INR16b (2.4% annualized) on residual cleansing in the MFI book and one technical slippage in the corporate book. However, GNPA/NNPA ratios improved 8bp/3bp QoQ to 1.98%/0.59%. Restructured book declined to 0.8% in 4QFY23 from 1.25% in 3Q. Management suggested for 18-23% loan growth under Planning Cycle 6 (PC6), while continued moderation in credit cost is expected to aid RoA expansion.

Outlook

We estimate IIB to deliver ~27% earnings CAGR over FY23-25, while its RoA/RoE would expand to 2.1%/17.6%. We reiterate our BUY rating with an unchanged TP of INR1,450 (premised on 1.7x Sep’24E ABV).

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