Moneycontrol Be a Pro
Get App
Last Updated : Oct 16, 2017 03:55 PM IST | Source: Moneycontrol.com

Buy IndusInd Bank; target of Rs 1809: HDFC Securities

HDFC Securities is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 1809 in its research report dated October 13, 2017.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on IndusInd Bank


IIB has been a  master in execution across planning cycles, despite weak macros.  We derive confidence from the mgt’s ability to beat ambitious targets  consistently  across  parameters. The bank is making all the right moves  on  either  side of the B/S, to deliver best-in -class return ratios (1.8% over FY18-20E) for the foreseeable future.The  2Q  numbers  further  vindicate  our  positive  stance,  given healthy all-round  credit  growth (+24%), robust fee growth (+23%), stable NIMs and controlled  asset  quality  (stable  G/NNPA QoQ). An exposure of merely ~Rs 3.9bn to a/cs in RBI’s second list, and conservative provisioning (65%) for the same provide additional comfort.


Outlook


With  falling  interest  rates  and  subsequent  pressure on yields, IIB is amongst   the   better-placed   banks,  with  a  greater  proportion  of  a high-yielding  fixed rate book and additional headroom for reduction in CoF (tweak  SA  rates). Maintain BUY with a TP of Rs 1809 (3.75x Sept-19 ABV of Rs 482).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Oct 16, 2017 03:55 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant