Buy IndusInd Bank, target Rs 2,120: JM Financial

JM Financial has a buy call on IndusInd Bank with a target price of Rs 2,120.

The current market price of IndusInd Bank is Rs 1,945.

Time period given by the brokerage is one year when IndusInd Bank price can reach the defined target.


"IndusInd reported a stable 1QFY19 with 24 per cent YoY growth in earnings driven by 29 per cent growth in loans and 20 per cent growth in core fees. Core-PPOP grew 27 per cent YoY during the quarter even as NII growth was a tad soft at 20 per cent YoY. NIMs tapered by 5bps QoQ to 3.92 per cent led by higher cost of funds and, in our view, also a reflection of bank's own efforts to improve the risk profile of the corporate portfolio before onboarding of BHAFIN's loan book. As BHAFIN acquisition closes towards 2HFY19, we expect IIB's margin trajectory to remain strong and loan portfolio to be well balanced and diversified. Opex growth was contained at 12 per cent YoY due to slightly slower network expansion during the quarter (10 branches added). We continue to like Indusind for its balanced portfolio mix, strong medium-term growth trajectory and healthy earnings growth," JM Financial said in a report.