IndusInd Bank share price hits 52-week high on strong Q1 results; Should you buy? Here’s what brokerages say
₹1,443.35 apiece in the early trade Wednesday after the private sector lender posted decent earnings for the first quarter of FY24, with strong loan book growth and improvement in asset quality, leading to bullish views from analysts. IndusInd Bank reported a standalone net profit of ₹2,123.6 crore in Q1FY24, witnessing a growth of 32.5% from ₹1,603.29 crore in the same quarter last year. Net interest income (NII) increased 18% to ₹5,862.5 crore from ₹4,125.3 crore, YoY.
The private lender’s loan growth was healthy at around 22% YoY and was broad-based across large corporate, mid-small corporate and vehicle segments. Asset quality remained stable during the June quarter, while slippage ratio improved to 1.9% from 2.7%, sequentially. Read here: IndusInd Bank Q1 Results: Net profit rises 32% to ₹2,124 crore, NII up 18% YoY; asset quality remains stable Brokerages maintained their bullish view on IndusInd Bank stock and raised their target prices given strong growth prospects of the bank.
Here’s what brokerages said: Morgan Stanley maintained an ‘Overweight’ rating on IndusInd Bank and raised the target price to ₹1,800 per share. The global brokerage said that the bank’s earnings have been consistent with better retail deposit mix and lower asset quality risk. It expects good returns via compounding, estimate upgrades and re-rating.
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