Dolat Capital recommends ‘Buy’ on IndusInd Bank

MUMBAI: Dolat Capital has recommended a ���Buy��� recommendation on IndusInd Bank with a target price of Rs 94.

���IndusInd Bank is in restructuring mode after a change in the top level management. The bank historically was characterized by low business growth and profitability. However, the restructuring efforts have started showing results with improved performance in the various business segments ��� profitability, NIMs and business growth. We believe the stock is yet to completely re-rate with the change in business performance. At CMP, the stock trades at 11x FY11E EPS of Rs 7.1, 1.6x FY11E book value of Rs 47 and 2.2x FY11E adjusted book value of Rs 35. We recommend a BUY with a target price of Rs 94 (2x FY11E book value) over the next 12 months,��� said the Dolat Capital report.