Hot Stocks: What should investors do with IndusInd Bank, ICICI Lombard and ICICI Prudential Life Insurance post Q3 results?

Brokerage firm JPMorgan maintained its overweight stance on IndusInd Bank post the December quarter results, Kotak Institutional Equities has a buy on ICICI Prudential Life, and ICICIdirect retained hold on ICICI Lombard General Insurance post Q3 results.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

JP Morgan on IndusInd Bank: Overweight| Target Rs 1400
JPMorgan maintained an overweight rating on IndusInd Bank post the December quarter results with a target price of Rs 1400.

The core PPOP rose over +20% on a YoY basis and was largely driven by loan growth of 19% on a YoY basis. The net interest margins (NIMs) expanded by 3bps on a QoQ basis despite a 37bps rise in the cost of deposits.

BofA Securities on IndusInd Bank: Buy| Target Rs 1500
BofA Securities maintained its buy rating on IndusInd Bank post the December quarter results with a target price of Rs 1500.

It is among the top picks for the year 2023. Strong loan growth momentum was led by vehicles.

Jefferies on IndusInd Bank: Buy| Target Rs 1600
Jefferies maintained its buy rating on IndusInd Bank post the December quarter results with a target price of Rs 1600.

IndusInd Bank reported a profit for the December quarter which was ahead of estimates with better NII & lower opex. NIM expansion of 17bps YoY was encouraging.

“Slippages were down QoQ to 2.6% of past year loans, but gross NPLs rose QoQ due to lower write-off; bank utilised Rs5bn from buffers & still carries 0.8% of loans as buffers,” said the note.

Kotak Institutional Equities on ICICI Prudential Life: Buy| Target Rs 650
Kotak Institutional Equities maintained its buy rating on ICICI Prudential Life with a target price of Rs 650 post the December quarter results.

“We believe that the diminishing share of ICICI Bank’s business (15% of APE in 3QFY23) will incrementally reduce the impact of its declining business on ICICI Prudential Life,” said the note.

“While the insurer’s diversified channel and product mix should support medium-term growth, we do not find any levers of margin expansion,” it said.

ICICIdirect on ICICI Lombard General Insurance: Hold| Target Rs 1300
ICICIdirect maintained its hold rating on ICICI Lombard General Insurance with a target of Rs 1300 post the December quarter results.

ICICI Lombard reported a mixed performance. "Rolling to FY25E, we value ICICI Lombard at 2.1x FY25E premium (50% weight), 1.1x FY25E float (50% weight), and maintain our target price at Rs 1300/share," said the note.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)