Banking Stock Scales New 52-Week High As PAT Jumps 33%, ICICI Securities Raises TP

IndusInd Bank shares today traded new 52-week high soon after it reported better-than-expected first-quarter earnings. IndusInd Bank announced on July 18 a surge of 32.5% year-on-year (YoY) in its net profit for the quarter ended June 30 to Rs 2124 crore. Current market price of IndusInd Bank share is Rs 1415.80 per share with intraday gain of 1.83%. IndusInd Bank stock traded its new 52-week high today. ICICI Securities has assigned buy call with target price of Rs 1700 apiece. Check details below:

IndusInd Bank Stock Performance & Return: Current market price of IndusInd Bank share is Rs 1415.80 per share on BSE. Its 52-week high price is Rs 1443.35 per share and 52-week low price is Rs 840.00 per share, respectively. The company has a market capitalisation of Rs 1,10,059.45 crore.

IndusInd Bank offered over 3% return in last 1-week, soared 26% in last 3-months, gave return of 63% in last 1-year, and jumped 172% in last 3-years.

IndusInd Bank Quarterly Results: The bank's total income for the quarter surged by nearly 28% YoY to Rs 12,939 crore, as per the BSE filing. Its net interest income jumped 18% YoY to Rs 4867 crore. It announced its operating profit, before provisions and contingencies, soared 13% YoY to Rs 3,830 crore. Meanwhile, provisions for the quarter under consideration declared at Rs 992 crore as against Rs 1,251 crore a year ago.

IndusInd Bank Valuation: If you buy IndusInd Bank share at current market price of Rs 1415 per share, you can get potential upside of 20%. According to ICICI Securities, in its brokerage report dated July 19, 2023, "With sharp reduction in RSA (down to 66 bps) and macro tailwinds, we see healthy moderation in credit costs, driving RoA higher. Overall, we estimate the bank delivering 1.85%-1.9% RoA for FY24-25E with 15-16% RoE. We increase our target price to Rs1,700 (vs Rs1,550), valuing the stock at ~1.9x (vs ~1.7x) FY25E ABV. Maintain BUY."

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