Buy IndusInd Bank; target of Rs 1914: Anand Rathi

Anand Rathi 's research report on IndusInd Bank

Another quarter of strong credit and operating profit growth was reported by Indusind Bank. Provisions made for the exposure to IL&FS, however, led to lower profitability. We are sanguine about its loan-growth prospects and its asset quality, given a low stressed pipeline and insignificant restructured portfolio. We retain our Buy recommendation.

Outlook

Our Oct’19 target of `1,914 is based on the two-stage DDM model. This implies a ~3.6x P/ABV multiple on its FY20e book.