Anand Rathi has given Buy recommendation for IndusInd Bank with a target price of Rs. 1300 in its research report issued on Sep 05, 2022

Anand Rathi’s research report on IndusInd Bank

Immediately after the first Covid wave, Indusind Bank was severely hit on both asset and liability sides. Its turnaround in the last few quarters has been stellar given that one-third of its assets (VF+MFI books) were impacted and the strong run on deposits on its liability side. Stress on its VF & MFI books was much lower than the industry and strong traction was seen in deposits. We expect credit growth and profitability to be strong on account revived demand in MFI and vehicle finance; bright corporate outlook in on the government’s infra push; sturdy balance sheet (72% coverage, Rs30bn provision buffer, 1.2% of loans) and strong liquidity and capitalisation.

Outlook

We retain our positive view with a revised TP of Rs1,300 (earlier 1,200), valuing it at 1.7x P/ABV on its FY24e book.

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