IndusInd Bank on Tuesday reported a 32.5% year-on-year (YoY) rise in the net profit for the quarter ended June to Rs 2,124 crore. An ET Now poll estimated the profit at Rs 2,100 crore. Net interest income, the difference between interest earned and interest expended, rose 18% YoY to Rs 4,867 crore. The bank’s operating profit, before provisions and contingencies, grew 13% YoY to Rs 3,830 crore.
Here is what top brokerages recommended:
Goldman Sachs: Buy | Target: Rs 1,681
Goldman Sachs has a ‘Buy’ view on IndusInd Bank for a price target of Rs 1,681. The Q1 earnings were in line with the estimates given by Goldman and of “good quality”. IndusInd is a strong play on the commercial retail uptick. The foreign brokerage remains constructive on IndusInd Bank and sees it delivering core PPOP (Pre-provision Operating Profit) growth of 21% CAGR over FY23-26.
JP Morgan: Neutral | Target: Rs 1,250
JP Morgan has a ‘Neutral’ stance on the private lender with a price target of Rs 1,250. The credit cost beat estimates partly driven by contingent drawdown. Net interest margins (NIMs) were flat Q/Q. Deposit rates expected to peak in 2Q. A move by the founders to shore up stake in the bank will be a positive near-term stock catalyst.
Nuvama: Buy | Target: Rs 1,620
IndusInd Bank’s Q1 earnings were in line with the estimates of Nuvama. With high credit costs behind, not to mention a stable NIM and steady loan growth, IIB’s earnings shall outperform the sector. We are tweaking our EPS estimates and revising the target price to Rs 1,620 from Rs 1,230 earlier based on an upward revision in the target FY25E BV to 1.7X (from 1.3x). It has upgraded the stock to ‘Buy’.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)