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ICICI Securities has buy call on IndusInd Bank with a target price of Rs 1420. The current market price of IndusInd Bank Ltd. is Rs 896. Time period given by analyst is one year when IndusInd Bank Ltd. price can reach defined target.
IndusInd Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 69844.92 Crore).
IndusInd Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 9614.34 Crore, up 1.33 % from last quarter Total Income of Rs 9488.06 Crore and up 8.18 % from last year same quarter Total Income of Rs 8887.28 Crore. The bank reported net profit after tax of Rs 1241.55 Crore in latest quarter.
Investment Rationale
The interaction with the management of IndusInd Bank (IIB) suggests that the macro uncertainties / volatility amidst current geopolitical situation and prolonged supply disruption may pose some risk to financing demand in gems/jewellery (Russia accounts for ~30% of global diamond output) and vehicle financing (due to rise in fuel prices). Nonetheless, with disbursements reaching pre-covid levels in most retail products, revival in MFI disbursement and encouraging growth in corporate lending will lead growth towards IIB’s 2-year credit growth target of 16- 18%. With respect to MFI portfolio, independent review findings are in line with affirmations made earlier and incremental provisioning impact is a mere <1bps of advances. the brokerage expects slippages to moderate 3.5% in q4fy22 and lower fy23e, credit cost start normalising fy23e onwards. we expect iib deliver>5% PPoP/loans, >1.8% RoAs and 15% RoEs by FY23E. Maintain BUY with an unchanged target price of Rs1,420. Key risks: 1) lower than estimated growth, and 2) credit cost not normalising soon.
Promoter/FII Holdings
Promoters held 16.53 per cent stake in the company as of 31-Dec-2021, while FIIs owned 47.65 per cent, DIIs 20.22 per cent.
IndusInd Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 69844.92 Crore).
IndusInd Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 9614.34 Crore, up 1.33 % from last quarter Total Income of Rs 9488.06 Crore and up 8.18 % from last year same quarter Total Income of Rs 8887.28 Crore. The bank reported net profit after tax of Rs 1241.55 Crore in latest quarter.
Investment Rationale
The interaction with the management of IndusInd Bank (IIB) suggests that the macro uncertainties / volatility amidst current geopolitical situation and prolonged supply disruption may pose some risk to financing demand in gems/jewellery (Russia accounts for ~30% of global diamond output) and vehicle financing (due to rise in fuel prices). Nonetheless, with disbursements reaching pre-covid levels in most retail products, revival in MFI disbursement and encouraging growth in corporate lending will lead growth towards IIB’s 2-year credit growth target of 16- 18%. With respect to MFI portfolio, independent review findings are in line with affirmations made earlier and incremental provisioning impact is a mere <1bps of advances. the brokerage expects slippages to moderate 3.5% in q4fy22 and lower fy23e, credit cost start normalising fy23e onwards. we expect iib deliver>5% PPoP/loans, >1.8% RoAs and 15% RoEs by FY23E. Maintain BUY with an unchanged target price of Rs1,420. Key risks: 1) lower than estimated growth, and 2) credit cost not normalising soon.
Promoter/FII Holdings
Promoters held 16.53 per cent stake in the company as of 31-Dec-2021, while FIIs owned 47.65 per cent, DIIs 20.22 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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