IndusInd Bank, a leading private bank, saw a nearly 4% decline to Rs 1556 on January 19 following the release of its December quarter results.
In Q3, IndusInd Bank reported a 17.3% surge in consolidated net profit to Rs 2,291.8 crore, up from Rs 1959.2 crore the previous year. The bank's interest rate rose by 18% year-on-year to Rs 5,296 crore in the corresponding period. The net interest margin ratio increased to 4.29%, compared to last year's 4.27%.
Analysts anticipate a potential rebound for IndusInd Bank shares. Notably, its margin ratio and retail deposit rate have improved. Motilal Oswal Finance Services highlights its exceptional interest income and mutual fund portfolio amid robust earnings growth. The controlled provision ratio augurs well for its growth prospects. Although the bank may face challenges, its long-term growth outlook appears promising, leading to a recommended stock purchase with a target price of Rs 1900.
Kotak Equities brokerage also recommends acquiring a stake in IndusInd Bank, increasing the target price from Rs 1600 to Rs 1800. The bank continues to benefit from a favorable short-term business environment, offering higher interest rates on deposits and attractive returns on retail schemes. Despite the recent decline in share value, the bank is seen as poised for impressive growth in the long run.
IndusInd Bank shares, currently priced at Rs 1556, have experienced a 7% decline in the last week. While this decline may persist, it presents a potential buying opportunity for long-term investors.
Historically, the stock has exhibited strong performance, gaining 66% in the last three years and 30% in the past year. Despite a minor decline in the current year and the last three months, it remains a viable long-term investment. Investors should consider leveraging price declines as an opportunity for a sound long-term investment, guided by expert advice.
Data in this section is not a buy/sell recommendation but only a compilation of information on various technical/volume-based parameters
Analyst certifies that all of the views, if any, expressed in this report reflect his personal views about the subject company or companies and its or their securities, and no part of his compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. Analyst affirms that there exists no conflict of interest that can bias his views in this report. The Analyst does not hold any share(s) in the company/ies discussed.
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