Edelweiss is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 2020 in its research report dated April 19, 2018.
Edelweiss' research report on IndusInd Bank
IndusInd Bank's Q4FY18 earnings reaffirms our confidence on the bank achieving further scale with quality and being structurally poised to achieve Phase IV targets. Robust growth momentum (led by large corporates and vehicle financing), accelerated CASA ramp up, sustained NIMs and operating leverage supported 20% YoY NII and 27% YoY PAT growth. Despite adhering to RBI's divergence report (which was higher than estimated at gross level), GNPLs and credit costs were contained (as net divergence and net slippages were marginal post recovery/write-off/sale to ARC).
Outlook
We expect superior growth, stable margins and controlled credit costs to help the bank sustain >25% earnings CAGR over FY18-20. At CMP, the stock trades at 3.4x FY20E P/ABV. We maintain ‘BUY/SP’.For all recommendations report, click here
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