IndusInd Bank shares rose 52% from 52-week low, price target of Rs 2,000 on cards?
IndusInd Bank stock rose from the 52-week low of Rs 1,007.20 touched on March 28, 2023 to Rs 1,535 on BSE today. On the other hand, benchmark Sensex climbed 26.61% in a year.
- Mar 27, 2024,
- Updated Mar 27, 2024 3:59 PM IST
Shares of private sector lender IndusInd Bank Ltd have surged 52% from their 52-week low in a year. The banking stock rose from the 52-week low of Rs 1,007.20 touched on March 28, 2023 to Rs 1,535 on BSE today. On the other hand, benchmark Sensex climbed 26.61% in a year.
The banking stock closed 1.03% higher at Rs 1535 in the current session.
The stock of the private sector lender has lost 4% this year. Total 0.63 lakh shares of the bank changed hands amounting to a turnover of Rs 9.61 crore on BSE. Market cap of the bank rose to Rs 1.19 lakh crore.
Brokerage Nirmal Bang has a target of Rs 1,854 on the banking stock.
“We have maintained our loan growth estimate of 17.6% CAGR over FY23-FY26E, which along with stable margins and controlled credit costs, will lead to return on assets of 2% each in FY25E and FY26E. We maintain ‘BUY’ with a target price of Rs 1,854 (valued at 1.9x Dec. 2025E adjusted book value),” said Nirmal Bang
ICICI Securities has retained its buy call on the stock with a target price of Rs 2,000.
"NIM is likely to remain stable, resulting in sector leading 16/17% CAGR in NII /PPOP for FY24-26E. The bank has 5-15bps improvement scope in each of NIM, opex to assets and credit costs over FY24-26E. Yet, we are conservatively factoring cumulatively
Another brokerage Sharekhan has reiterated its buy call on the banking stock.
"The ability to manage NIMs in the current environment along with being a key beneficiary in the interest rate reversal cycle would keep the sentiment positive. Key focus is on strengthening the liability franchise and delivering sustained healthy growth. Return ratios have reasonable support from lower credit costs at this stage of the cycle. The stock trades at 1.6x/1.4x its book value estimates for FY2025E/FY2026E. Valuations are attractive given the RoA trajectory and stable outlook. Key monitorable – Promoters awaiting approval from the RBI to increase their stake," said Sharekhan
"We reiterate Buy call on IndusInd Bank (IIB) with an unchanged price target of Rs 1,850. The near-term business outlook remains comfortable except for the elevated cost ratios," added the brokerage.
The banking stock has a one-year beta of 0.5, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of IndusInd Bank stands at 53.3, signaling it's trading in neither in the overbought nor in the oversold zone. IndusInd Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock surged to a 52 week high of Rs 1694.35 on January 15, 2024 on BSE.
Shares of private sector lender IndusInd Bank Ltd have surged 52% from their 52-week low in a year. The banking stock rose from the 52-week low of Rs 1,007.20 touched on March 28, 2023 to Rs 1,535 on BSE today. On the other hand, benchmark Sensex climbed 26.61% in a year.
The banking stock closed 1.03% higher at Rs 1535 in the current session.
The stock of the private sector lender has lost 4% this year. Total 0.63 lakh shares of the bank changed hands amounting to a turnover of Rs 9.61 crore on BSE. Market cap of the bank rose to Rs 1.19 lakh crore.
Brokerage Nirmal Bang has a target of Rs 1,854 on the banking stock.
“We have maintained our loan growth estimate of 17.6% CAGR over FY23-FY26E, which along with stable margins and controlled credit costs, will lead to return on assets of 2% each in FY25E and FY26E. We maintain ‘BUY’ with a target price of Rs 1,854 (valued at 1.9x Dec. 2025E adjusted book value),” said Nirmal Bang
ICICI Securities has retained its buy call on the stock with a target price of Rs 2,000.
"NIM is likely to remain stable, resulting in sector leading 16/17% CAGR in NII /PPOP for FY24-26E. The bank has 5-15bps improvement scope in each of NIM, opex to assets and credit costs over FY24-26E. Yet, we are conservatively factoring cumulatively
Another brokerage Sharekhan has reiterated its buy call on the banking stock.
"The ability to manage NIMs in the current environment along with being a key beneficiary in the interest rate reversal cycle would keep the sentiment positive. Key focus is on strengthening the liability franchise and delivering sustained healthy growth. Return ratios have reasonable support from lower credit costs at this stage of the cycle. The stock trades at 1.6x/1.4x its book value estimates for FY2025E/FY2026E. Valuations are attractive given the RoA trajectory and stable outlook. Key monitorable – Promoters awaiting approval from the RBI to increase their stake," said Sharekhan
"We reiterate Buy call on IndusInd Bank (IIB) with an unchanged price target of Rs 1,850. The near-term business outlook remains comfortable except for the elevated cost ratios," added the brokerage.
The banking stock has a one-year beta of 0.5, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of IndusInd Bank stands at 53.3, signaling it's trading in neither in the overbought nor in the oversold zone. IndusInd Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock surged to a 52 week high of Rs 1694.35 on January 15, 2024 on BSE.