Buy IndusInd Bank, target price Rs 1470: JM Financial

JM Financial has buy call on IndusInd Bank with a target price of Rs 1470. The current market price of IndusInd Bank is Rs 1190.5. Time period given by analyst is a year when IndusInd Bank price can reach defined target.

IndusInd Bank, incorporated in the year 1994, is a banking company (having a market cap of Rs 93801.96 Crore).

IndusInd Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 11533.89 Crore, up 7.60 % from last quarter Total Income of Rs 10719.20 Crore and up 19.97 % from last year same quarter Total Income of Rs 9614.34 Crore. The bank has reported net profit after tax of Rs 1963.64 Crore in latest quarter.

Investment Rationale
The brokerage believes IndusInd is on track to deliver ROA/RoE of 1.9%/16.9% in FY25E. The bank trades at undemanding valuations of 1.3x FY25E BVPS and JM Financial expects stock to rerate upwards aided by steady delivery on growth and return metrics.

Promoter/FII Holdings
Promoters held 16.51 per cent stake in the company as of 31-Dec-2022, while FIIs owned 45.83 per cent, DIIs 24.46 per cent.