What should investors do with IndusInd Bank post Q3? Brokerages see up to 50% upside

Global brokerage firms maintained their rating on IndusInd Bank post-December quarter results after the private sector lender reported a 50 per cent YoY rise in the profits at Rs 1,242 crore for the quarter ended December 31, 2021.

It had posted a profit of Rs 830 crore in the corresponding quarter of the previous fiscal.

The most aggressive target price of Rs 1405 was put out by Goldman Sachs, which translates into an upside of over 55 per cent from Rs 903 recorded on January 28.

The bank's net interest income (NII) grew 11 per cent YoY to Rs 3,793 crore compared to Rs 3,406 crore posted last year.

The Net Interest Margin (NIM), a gauge for profitability, was at 4.10 per cent marginally low of third-quarter 2020-21 when NIM stood at 4.12 per cent.

The Gross NPA ratio stood at 2.48 per cent as of December 31, 2021, versus 2.77 per cent as of September 30, 2021. The net NPA ratio was at 0.71 per cent as of December 31, 2021, against 0.80 per cent on September 30, 2021.

The private lender's slippage fell 8.49 per cent QoQ to Rs 2,598 crore in Q3FY22 from Rs 2,658 crore posted in Q2FY22.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

Goldman Sachs: Buy| Target Rs 1405

Goldman Sachs maintained a buy rating on IndusInd Bank post-December quarter results with a target price of Rs 1405 that translates into an upside of over 50 per cent from Rs 903 recorded on January 28.

The balance sheet further strengthened with MFI issues addressed. The asset quality has improved sequentially which is a positive sign.

Also Read: Global View: L&T, Kotak Mahindra Bank and IndusInd Bank could give 14-50% returns in next 12 months

Jefferies: Buy| Target Rs 1220

Jefferies maintained a buy rating on IndusInd Bank post Q3 results with a target price of Rs 1220 that translates into an upside of over 35 per cent from Rs 903 recorded on 28 January.  

Profit was above estimates on lower credit cost. Growth in loans softened a bit to 4 per cent on a QoQ basis and slippages were high at 5 per cent. The turnaround in MFI, and pick-up in auto lending will be the key.

Nomura: Buy| Target Rs 1325

Nomura maintained a buy rating on IndusInd Bank post Q3 results with a target price of Rs 1325 that translates into an upside of over 46 per cent from Rs 903 recorded on 28 January.  

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)