Buy IndusInd Bank, target price Rs 1408: Anand Rathi

Anand Rathi has buy call on IndusInd Bank with a target price of Rs 1408. The current market price of IndusInd Bank is Rs 1198.65.

IndusInd Bank, incorporated in the year 1994, is a banking company (having a market cap of Rs 94139.26 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
With credit growth expected to be strong and moderating credit costs, earnings are expected to be robust. The brokerage maintains its positive view on the bank with a TP of Rs 1,408, valuing it at 1.6x P/ABV on its FY25e book.

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.