Hold IndusInd Bank; target of Rs 1031: KR Choksey

KR Choksey recommended Hold rating on IndusInd Bank with a target price of Rs 1031 in its research report dated February 03, 2024.

Broker Research

February 04, 2025 / 12:07 IST

hold

26 Aug, 2025 12:21

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KR Choksey's research report on IndusInd Bank

In Q3FY25, Net Interest Income (NII) decreased by 1.3% YoY (-2.2% QoQ) to INR 52,281 Mn. The NII was lower by 3.6%. Pre-Provision Operating Profits (PPOP) declined by 10.9% YoY (flat QoQ) in Q3FY25 to INR 36,007 Mn. The PPOP was a 2.6% miss compared to our estimates. The net profit for Q3FY25 stood at INR 14,023 Mn, a decline of 39.1% YoY (+5.3% QoQ). Near-term growth remains constrained by macroeconomic stress, elevated credit costs, and cautious lending in unsecured and microfinance segments, impacting margins and asset quality.

Outlook

We revise our Adjusted Book Value (ABV) downward by 4.3% for FY26E and 6.0% for FY27E, factoring in multiple stress points and a slower-than-anticipated recovery in the near to medium term. Rolling forward our valuation to FY27E, we assign a P/B multiple of 0.95x to the FY27E ABVPS of INR 1,084.8, leading to a revised target price of INR 1,031 (earlier INR 1,305). Given the current risk-reward dynamics, we maintain our “HOLD” rating on IndusInd Bank.

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