IndusInd Bank shares jump over 2% on strong Q2 show. Should you buy the stock?
IndusInd Bank jumped 2.5% to the day's high of Rs 1,456.50 on the NSE on Thursday following strong September quarter earnings posted by the private lender on Wednesday post market hours. The stock was among top Nifty gainers in the early trade riding on the fresh impetus provided by favourable views from top brokerages.
Among the ones who came out with their post-earnings review of the stocks were BofA, Kotak Institutional Equities and Nuvama and all of them have a buy view on the counter.
Meanwhile, Motilal Oswal chose to take a neutral stance on the counter.
IndusInd Bank reported a 22% year-on-year (YoY) rise in consolidated net profit for the quarter ended September 2023 to Rs 2,202 crore. Total income from operations increased over 26% on year to Rs 13,529 crore. Net interest income, the difference between interest earned and interest expended, rose 18% on year to Rs 5,077 crore.
Provisions for the quarter were Rs 974 crore, compared with Rs 1,141 crore a year ago. The net profit was lower than an ET Now poll of Rs 2,250 crore.
This is what they recommended:
BofA: Buy| Target: Rs 1,750
BofA has a buy view on IndusInd Bank and the US-based brokerage has hiked the target price to Rs 1,750 from Rs 1,650, earlier. The Q2FY24 earnings ticked more boxes for this brokerage which said that IndusInd's re-rating thesis remains intact.
