IndusInd Bank jumps 4% after robust Q1, analysts say it can rise 27% more

economictimes.indiatimes.com:

IndusInd Bank surged nearly 4% in Wednesday's trade to its highest level in over two-and-a-half years as the private lender's better-than-expected first quarter earnings prompted analysts to increase their price targets on the stock. IndusInd shares settled at ₹1,420.70 on the NSE, up 2.19% from the previous close.

Over 95 lakh IndusInd Bank shares exchanged hands on the BSE and NSE, nearly three times the combined daily average volume for the last month. Analysts see a further 27% upside potential from the current levels citing scope for improvement in net interest margins (NIMs) aided by asset mix, which in turn may lead to improvement in return ratios.

Of the 33 analysts who reviewed IndusInd Bank's first quarter earnings, 30 have a 'buy' rating and three remain 'neutral', showed a Bloomberg poll of analysts. The consensus price target on the stock saw a 9.1% increase to Rs 1,578.96 apiece, Bloomberg data showed.

Morgan Stanley is the most bullish on the stock with a price target of ₹1,800 apiece. «Earnings have been consistent with better retail deposit mix and lower asset quality risk.