Prabhudas Lilladher is bullish on IndusInd Bank has recommended buy rating on the stock with a target price of Rs 2075 in its research report dated April 19, 2018.
Prabhudas Lilladher's research report on IndusInd Bank
IIB's earnings in line with estimates, reporting a PAT of Rs9.53bn (PLe: Rs9.47bn). Slight disappointment was on the slowdown on fees and increased yields waned down treasury income leading to lower other income. Bigger disappointment was the divergence with RBI on NPAs for FY17 of Rs13.5bn, but most of the divergent NPAs were sold to ARC, repaid/recovered, written off and recognized over the course of 9MFY18 and only Rs817mn flowed through the slippages in Q4.
Outlook
We see some upgrades/recoveries from NCLT related lists helping asset quality and strong loan growth with stable NIMs to drive earnings CAGR of 25% over FY19-FY20. We retain BUY with increased TP of Rs2,075 (up from Rs1,915) based on 3.9x Mar-20 ABV.For all recommendations report, click here
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