IndusInd Bank stock gained 23% in less than 5 months; is there more upside left? Here's what brokerages say
₹1,694.35 in the previous session, on January 15. With that, it has now rallied over 71 percent from its 52-week low of ₹990.25, hit on February 1, 2023. The private sector lender reported a 22 percent year-on-year (YoY) rise in the September quarter standalone net profit to ₹2,181.5 crore on the back of higher income and lower provisions.
The lender reported a net interest income (NII)— the difference between interest earned and expended—of ₹5,077 crore in Q2 FY24, up 18 percent YoY. Its net interest margin (NIM), a key measure of profitability, was unchanged from the previous quarter, at 4.29 percent. The bank also witnessed a slight improvement in asset quality as compared to the June quarter.
Its gross bad loans stood at 1.93 percent of its total advances, down 1 basis point from the preceding quarter. Its net NPA ratio was at 0.57 percent, down 1 basis point from the June quarter. For the December quarter, the bank's net advances grew by 20 percent to ₹3,26,741 crore as compared to net advances of ₹2,72,754 crore in Q3FY23.
In the preceding quarter (Q2FY24), the net advances stood at ₹3,15,454 crore. Motilal Oswal: The brokerage has a ‘buy’ call on the stock with a target price of ₹1,900, indicating an upside of 14 percent. "IIB has been delivering consistent performance with both asset quality and return ratios improving steadily.
The bank is well poised to report further improvement in operating performance as all key vectors (credit cost, margins & opex) continue to move in the right direction, unlike most other banks. The steady loan growth and a more favorable asset mix toward retail will continue to support margins, especially with the shift in the interest rate cycle. Asset quality ratios have improved while
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