Edelweiss maintains buy on IndusInd Bank, target price Rs 1,793

Edelweiss has maintained buy rating on IndusInd Bank in the long term with a target price of Rs 1,793. The stock ended up 3.1% at Rs 1486.95 on Friday while BSE Sensex closed 428.00 points up at 41,009.71.

Company Finacials

The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs 4370.20 crore and net Non Performing Assets (Net NPAs) of Rs 2202.57 crore. For the quarter ended 30-09-2019, the company has reported consolidated interest income of Rs 5948.67 crore, up 3.39 % from last quarter interest income of Rs 5753.84 crore and up 33.61% from last year same quarter interest income of Rs 4452.10 crore.

The bank has reported net profit after tax of Rs 1400.95 Crore in latest quarter.

Investment Rationale

Bharat Financial’s integration and leveraging its distribution will boost IndusInd’s profitability metrics, said Edelweiss-.Portfolio growth, though lower than historical trend, will be built on superior mix while sustaining the NIM and high-fee profile. Despite concerns on exposure to stressed groups, it will deliver reasonable and sustainable earnings growth.