Buy IndusInd Bank; target of Rs 1550: KR Choksey

KR Choksey is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 1550 in its research report dated January 20, 2023.

Broker Research

January 20, 2023 / 13:07 IST

26 Aug, 2025 12:21

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KR Choksey's research report on IndusInd Bank

In Q3FY23, Net Interest Income (NII) increased 18.5% YoY/ 4.5% QoQ to INR 44,954 Mn. NIMs stood at 4.27% for Q3FY23, an expansion of 17 bps YoY/ 3 bps QoQ. The Pre-Provision Operating Profits (PPOP) grew by 11.3% YoY/ 4.0% QoQ in Q3FY23 at INR 36,864 Mn. PAT for Q3FY23 stood at INR 19,636 Mn, an increase of 58.2% YoY and 8.8% QoQ led by healthy operating performance and declining provisions. As of December 31, 2022, GNPA/ NNPA were 2.06%/ 0.62%, respectively, which improved from 2.48% and 0.71% as of December 31, 2021, respectively. Advances grew at 19.0% YoY/ 4.6% QoQ at INR 27,19,660 Mn, while deposits grew 14.4% YoY/ 3.2% QoQ at INR 32,54,910 Mn. The Bank's Total Capital Adequacy Ratio as per Basel III guidelines improved to 18.01% as of December 31, 2022.

Outlook

We assign a P/B multiple of 1.8x to the FY25E adj. BVPS of INR 860.7 to maintain our target price of INR 1,550 per share (earlier INR 1,387), an upside of 29.0% over the CMP. Accordingly, we maintain our rating on the shares of IndusInd Bank to "BUY."

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