Share market today: IndusInd Bank shares jumped after Q4 results. buy, say experts

According to Share Market Experts, IndusInd Bank has reported a good fourth quarter result for the financial year 2022-23, and the market is reacting to the good quarterly numbers announced by the private lender. He said that banking stock is looking positive and it may go up 1600 each level in the long term.

Why are IndusInd Bank shares rising?

On why IndusInd Bank shares are rallying today, Shreyansh Shah, Research Analyst, Stocksbox, said, “IndusInd Bank has delivered a decent performance in the fourth quarter, witnessing good momentum across businesses such as retail and corporate segments. Key metrics also showed an improving trend including NII, RoA and RoE with improved metrics on the asset quality side. We believe going forward the company will capture higher market share and manage risks through greater diversification. We believe that a well-capitalised balance sheet, improving collection efficiencies across business segments (vehicles and MFIs are key), low credit costs, conservative provisioning and strong focus on risk management framework command a high valuation multiple for the company going forward will help.”

Highlighting the positives from IndusInd Bank results, Anand Dama, Senior Research Analyst MK Global Financial Services said, “IndusInd Bank reported massive in-line PAT at Rs.20.4 billion (46% YoY)/RoA, led by lower LLPs, despite minor misses on NII and higher OpEx, as the bank continues to leverage Contingency buffer – to the tune of Rs2.9bn during 4Q – which is now Rs19bn / 0.7% of loans. Slippages due to restructuring of MFIs and Corporate (ACB Coal Washery) were higher QoQ at Rs16bn / 2.7% of loans. pool.”

Anand Dama further said that credit growth was strong at 21% YoY/6% QoQ, led by growth in retail loans (up 21% YoY/7% QoQ) and corporate and SME/BB book. Management conservatively guides for a broad growth range of 18-23% keeping in mind the macro-uncertainty, but expects better margins at 4.25-4.35% in FY24, as this rate reversal cycle and retail The portfolio benefits from an increase in the stock.

tagging ‘portfolio stock’ IndusInd Bank Shares, Anand Dama said, “We retain buy on the stock, with a revised TP of Rs 1,600/share, valuing the bank at 1.9x Mar-25e ABV (vs 2x Dec-24e ABV earlier). We MD K believes short-term extension (2 years vs. expected 3 years) is largely priced in, while near- to medium-term stock performance will track growth, asset quality and ROA trajectory.”

IndusInd Bank reports standalone net profit surpassing market estimates 2,040.51 crores in Q4FY23, an increase of almost 50 percent as against a net profit of Rs. 1,361.37 crore in Q4FY22. The private lender announced a nearly 17 per cent increase in its net income in the Q4 results for FY 2022-23.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.