Buy IndusInd Bank Ltd., target Rs 1300.0 : Bank of America Merrill Lynch

Bank of America Merrill Lynch has Buy call on IndusInd Bank Ltd. with a target price of Rs 1300.0. The current market price of IndusInd Bank Ltd. is 1189.75. Time period given by analyst is year, when IndusInd Bank Ltd. price can reach defined target. BofAML believes that the bank is pump primed for next leg of growth. Moreover, IndusInd Bank has requisite capital in place and we foresee a rapid gain of market share in next 3 years for IIB. Hence, strong core profitability, improving CASA, fee franchise and healthy return ratios are the clear outcomes. Doubling of distribution to lead to market share gains and drive net profit CAGR of 25%+ between FY16-18. Sustainable growth rate: 8.5%. PO is 21x our FY18E EPS for net profit CAGR of 25%+.