Buy IndusInd Bank; target of Rs 1650: Sharekhan

Sharekhan is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 1650 in its research report dated July 18, 2023.

Broker Research

July 19, 2023 / 12:01 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Sharekhan's research report on IndusInd Bank

IndusInd Bank (IIB) reported PAT at Rs. 2,124 crore (up 32% y-o-y/4% q-o-q), led by ~21% y-o-y decline in provisions and ~13% y-o-y growth in operating profit, which translated into RoA/RoEof ~1.9%/15.4%. Despite strong loan growth (up 22% y-o-y/4% q-o-q), stable NIMs at 4.29% q-o-q, and healthy core fee income (up 19% y-o-y/ 2% q-o-q), core operating profit grew at a slower pace by 15% y-o-y/1% q-o-q mainly due to higher opex growth (up 22% y-o-y/6% q-o-q). Annualised total credit cost stood at 134 bps (as of average advances) vs. 146 bps q-o-q and 205 bps y-o-y. The bank is guiding for lower credit cost at 110-130 bps in the coming quarters. Overall, asset quality remained stable.

Outlook

Near-term business trends look comfortable, and the franchise is looking towards more predictable performance, which is a key positive. At the CMP, the stock trades at 1.7x/1.5x its FY2024E/FY2025E BV. We maintain Buy with a revised PT of Rs. 1,650.

For all recommendations report, click here