172@29@17@243!~!172@29@0@53!~!|news|business|stocks|sell-indusind-bank-target-of-rs-460-dolat-capital-5616241.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Jul 30, 2020 07:08 PM IST | Source: Moneycontrol.com

Sell IndusInd Bank; target of Rs 460: Dolat Capital

Dolat Capital is bearish on IndusInd Bank has recommended sell rating on the stock with a target price of Rs 460 in its research report dated July 28, 2020.

Broker Research
Representative image
Representative image
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on IndusInd Bank


IIB reported a healthy NII growth at 16% YoY. However, PPoP growth at 10% YoY was supported by high treasury gains, excluding which core PPoP de-grew by 10% YoY. Total COVID related provisions stood at 60 bps of advances or Rs12bn. Moratorium by value was at 16% (14% excluding MFI) for the bank, of which 90% is secured. Moratorium levels were at 50% in May-end. Management’s conservative stance on growth and provisioning along with additional disclosures on ‘BBB and below’ (at over 30%) book provide some comfort. However, building a more sustainable franchise will have its medium term challenges. We build in ~300 bps of credit costs against management guidance of 185-200 bps.



Outlook


We maintain our SELL recommendation on IIB with a TP of Rs460 based on 0.9x FY22E P/ABV.





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.

First Published on Jul 30, 2020 07:08 pm
Sections