"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
Motilal Oswal's research report on IndusInd Bank
IIB reported an in line quarter, with a PAT of INR14b (+51% YoY, in line), aided by healthy NII growth and controlled provisions. Asset quality ratios improved sequentially as stress in the MFI/Vehicle portfolio subsided. Loan book grew 4.6% QoQ, led by a pick-up in both the Corporate and Consumer Finance book. The CV book too reported a sequential growth, led by Utility Vehicles. Its Tractor and Credit Card portfolio witnessed healthy sequential growth. Fresh slippages moderated 20% QoQ to INR20.9b (3.7% annualized), aided by a fall in MFI/Vehicle slippages, even as Corporate slippages grew due to its Retail exposure. Restructuring book declined to 2.6% v/s 3.3% in 3QFY22. The GNPA/NNPA ratio moderated by 21bp/7bp QoQ to 2.27%/0.64%. We expect PAT to grow at 37% CAGR over FY22-24, leading to 15.5% RoE in FY24. We maintain our Buy rating.
Outlook
We expect 37% PAT CAGR over FY22-24, resulting in 15.5% RoE in FY24. We maintain our Buy rating with a TP of INR1,300 per share (1.7x FY24E ABV).
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