Motilal Oswal has given Buy recommendation for Indian Bank with a target price of Rs. 200 in its research report issued on Feb 07, 2022
Motilal Oswal’s research report on Indian Bank
Indian Bank (INBK) reported an in-line earnings performance, with net profits growing 34% YoY to INR6.9b, aided by steady NII growth, controlled opex, and a lower tax rate. Asset quality ratios continued to improve, with the GNPA/NNPA ratio declining 43bp/54bp QoQ to 9.13%/2.72%, while PCR increased 406bp QoQ to 72.2%. The bank carries 100% PCR on SREI Infra, while it has a 15% provision on a retail account where it has exposure of INR9b. We revise our credit cost and tax assumptions and expect INBK to deliver FY24E RoA/RoE at 0.8%/14.0% by FY24E. Maintain Buy.
We estimate credit costs to stay elevated at 2.2/2.0% for FY23/FY24. INBK would deliver FY24E RoA/RoE at 0.8%/14.0% by FY24E. Maintain Buy, with TP of INR200 (0.5x Mar’24E ABV).
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At 14:07 hrs Indian Bank was quoting at Rs 157.85, up Rs 2.35, or 1.51 percent.
It has touched an intraday high of Rs 158.75 and an intraday low of Rs 154.65.
It was trading with volumes of 85,616 shares, compared to its thirty day average of 317,680 shares, a decrease of -73.05 percent.
In the previous trading session, the share closed down 0.10 percent or Rs 0.15 at Rs 155.50.
The share touched its 52-week high Rs 194.80 and 52-week low Rs 96.20 on 26 October, 2021 and 19 April, 2021, respectively.
Currently, it is trading 18.97 percent below its 52-week high and 64.09 percent above its 52-week low.
Market capitalisation stands at Rs 19,659.29 crore.