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Last Updated : Jul 15, 2019 04:31 PM IST | Source: Moneycontrol.com

Accumulate IndusInd Bank; target of Rs 1800: Dolat Capital

Dolat Capital recommended Accumulate rating on IndusInd Bank with a target price of Rs 1800 in its research report dated July 12, 2019.

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Dolat Capital's research report on IndusInd Bank


IIB (merged with Bharat Financial) reported a profit of ` 14bn (growing 38% YoY – adjusted growth of 17% YoY). The key positive was the higher NIM of the MFI book. Advance growth remained at 28% YoY, with a material contribution from retail. The advance share between wholesale and retail is now equal. The merger ensures that its regulatory allocation to PSL and sub segments and branch distribution are met. We, therefore, believe this is likely to increase the flexibility for the bank to capture more profitable growth opportunities – although, we do not expect reckless growth, ensuring a largely stable advance mix.


Outlook


We maintain our target price, as we expect upside to be capped by the warrant issue price in the near term. At 2.9x FY21E P/ABV, maintain Accumulate.




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First Published on Jul 15, 2019 04:30 pm
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