Motilal Oswal has given Buy recommendation for IndusInd Bank recommended buy rating on the stock with a target price of Rs 1300 in its research with a target price of Rs. 1300 in its research report issued on Apr 29, 2022

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).

Leave a Reply

Your email address will not be published.