Buy IndusInd Bank, target price Rs 1450: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on IndusInd Bank with a target price of Rs 1450. The current market price of IndusInd Bank is Rs 1220.05.

IndusInd Bank, incorporated in the year 1994, is a banking company (having a market cap of Rs 95105.09 Crore).

IndusInd Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 10719.20 Crore, up 5.99 % from last quarter Total Income of Rs 10113.29 Crore and up 12.98 % from last year same quarter Total Income of Rs 9488.06 Crore. The bank has reported net profit after tax of Rs 1805.28 Crore in latest quarter.

Investment Rationa
Asset quality risks are receding with GNPA / NNPA moderating to 1.7%/0.4% by FY24. The brokerage expects 41% PAT CAGR over FY22-24, leading to 16% RoE in FY24. Rising interest rate is likely to drive yields which along with pick up in loan growth will likely to support margin.

Promoter/FII Holdings
Promoters held 16.51 per cent stake in the company as of 30-Jun-2022, while FIIs owned 45.83 per cent, DIIs 21.02 per cent.