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 October 18, 2023.

Broker Research

October 19, 2023 / 21:50 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on IndusInd Bank

IndusInd Bank (IIB) reported in line PAT at Rs. 2,181 crore (up 22% y-o-y/3% q-o-q) / RoA at ~1.9% led by healthy credit growth/ NII and lower credit cost. The bank continued to utilise the contingent buffer of Rs 180 crore during Q2 also. The buffer now stands at Rs. 1,520 crore (48 bps of loans). The bank guided that it would build incremental buffer provisions going forward and would not draw down further on contingent buffers. The bank also maintained its guidance for credit cost at 110-130 bps in H2FY24. NIMs were stable q-o-q at 4.29%, despite decelerating margin trend across sector. The bank is focusing on accelerating its retailization strategy which could offset increase in cost of funds leading to stable margin profile.

Outlook

Overall, asset quality trends were broadly stable. At the CMP, the stock trades at 1.7x/1.5x its FY2024E/FY2025E BV. We maintain a Buy on the stock with an unchanged PT of Rs. 1,650.

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