Maintain ‘buy’ on IndusInd Bank, revise target price to Rs 1,175

Discussion in 'Latest Brokerage Stock Buy-Sell Reports' started by Srouta Mukherjee, Apr 26, 2016.

  1. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

    Mar 28, 2015
    Likes Received:
    Indusind Bank’s 4QFY16 PAT of `6.2 billion was a small miss vs our expectations, driven by one-off provisioning, but PPOP growth of +35% y/y matched our expectations. FY16 has been a good year, with IIB delivering on all core metrics, and more importantly the asset quality review having no impact, implying good underwriting. For us, the FY17 outlook looks very promising, with retail momentum clearly picking up pace (+33% CV growth), large opex costs taken in FY16 and lower credit costs. We expect 28% EPS CAGR over FY16-18F with limited risks as well. Thus, we maintain our ‘buy’ with a revised target price of `1,175/share.