Shares of IndusInd Bank Ltd have risen 28% this year. The stock of the private lender clocked a majority of gains (22%) in the last six months. On the other hand, benchmark Sensex climbed 16% in 2023. The banking stock ended 0.88% higher at Rs 1569.70 in the previous session.
The stock of the private sector lender has gained 21.50% this year and risen 30.23% in the last one year. Total 0.55 lakh shares of the bank changed hands amounting to a turnover of Rs 8.61 crore on BSE. Market cap of the bank rose to Rs 1.22 lakh crore.
The banking stock has a one-year beta of 0.3, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of IndusInd Bank stands at 64.5, signaling it's trading in neither in the overbought nor in the oversold zone. IndusInd Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock hit a 52-week low of Rs 990.25 on February 1, 2023 and a 52 week high of Rs 1585.70 on BSE.
Emkay Global has raised its target price to Rs 2,000 from Rs 1825 per share.
"We have raised our earnings estimates by 1-4% over FY24-26E, factoring better growth/lower LLP and expect the bank to deliver healthy RoA at 1.9-2%/RoE at 16-18% RoE. The bank carries healthy contingent provision (0.5% of loans) as well as capital buffers (CET 1 at 16.3%), while any infusion by promoters to increase stake should further boost capital levels. Factoring in better earnings/RoE trajectory and margin stability amid the risk of contraction among peers, we upgrade the targtet to Rs 2,000 share from Rs 1,825/share, rolling forward its P/ABV on 2.1x Dec-25E ABV vs. 2x Sep-25E earlier," said the brokeage.
Antique stock broking said, “We expect the bank to deliver RoA and RoE of 1.9%/ 16% over FY24–26E. In our view, with respect to return ratios and growth expectations, valuations of 1.7x/1.5x FY25/ 26 BV is at a discount and continued demonstration of liability improvement and asset quality could drive multiples higher. We marginally raise our earnings estimate by 4%/ 2% for FY25/ 26E and maintain BUY with a revised target price of Rs 1,800 (1.9x 1HFY26 BV, vs. INR 1,725 earlier)."
The lender reported a 22 per cent year-on-year (YoY) rise in net profit at Rs 2202.16 crore in the September 2023 quarter. Profit in the September 2022 quarter came at Rs 1805.28 crore. Interest earned rose 29% to Rs 11,247 crore in the September quarter against Rs 8708.03 crore in the corresponding quarter of the last year. The Q2 earnings of the bank met estimates.
Pre-provisioning operating profit of IndusInd Bank climbed 10.28% to Rs 3908.73 crore in Q2 against Rs 3544.36 crore in the September 2022 quarter.
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