Buy IndusInd Bank; target of Rs 1952: Prabhudas Lilladher

Prabhudas Lilladher is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 1952 in its research report dated October 16, 2017.

October 18, 2017 / 15:58 IST

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on IndusInd Bank

IIB concluded its much speculated merger with Bharat Financial Inclusion (BFIL) with deal consideration of 639 shares of IIB for every 1,000 shares of BFIL which implies a dilution of 14.7% for IIB shareholders at CMP and implies a premium of 12‐13% for BFIL shareholders on CMP. The bank will continue existing operations of BFIL under a wholly owned subsidiary, though assets will move to IIB’s balance sheet. We see the deal slightly expensive, though it has positive bearing on return ratios in near term. In the medium to long term we see positive outcome as strong penetration of BFIL in rural with robust technology platform will help IIB cross sell both liability & asset products. We have retained our estimates (pre‐merger) and retain “BUY” with TP of Rs1,952 based on 3.9x Sep‐19 ABV (pre‐merger).

Outlook

The bank believes, the deal is likely to conclude in 6 ‐ 9 months given the requirement of approval of various regulators and shareholders. Retain BUY with TP of Rs1,952.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.