Shares of IndusInd Bank fell over 5 per cent today despite the lender reporting a stellar set of earnings for the quarter ended September 2022. IndusInd Bank stock lost up to 5.57 per cent to Rs 1150.45 against the previous close of Rs 1,218.35 on BSE. The share was the top Sensex and Nifty loser today. On Nifty, the banking stock fell up to 5.60 per cent to Rs 1150.10 in early trade. IndusInd Bank shares were trading higher than the 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
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In a year, the stock of IndusInd Bank has fallen 2.65 per cent and risen 31.73 per cent in 2022. Total 2.17 lakh shares of the firm changed hands amounting to a turnover of Rs 25.54 crore on BSE. The market cap of the bank declined to Rs 90,571 crore.
The lender reported a 60.4 per cent rise in net profit to Rs 1786.72 crore for the September quarter against net profit of Rs 1,113.53 crore in the year ago period. The net interest income for the quarter rose 18 per cent to Rs 4,302 crore. Provisions during the quarter fell over 33 per cent on year to Rs 1,141.06 crore as compared to Rs 1706.95 crore in the corresponding quarter.
Net interest margin came in lower to estimate at 5.34% (estimate 5.43%) owing to lower yields, said Gaurav Jani, Research Analyst at Prabhudas Lilladher.
Net interest income (NII) at Rs 4,300 crore (PLe Rs 4,330 crore) came in as expected growing by 18% YoY in tandem with credit growth (+17.8% YoY).
On the other hand, YES Securities has given a buy call with a target price of Rs 1,500 against the current market price of Rs 1,218, implying a return of 23 per cent in a year.
“We maintain ‘Buy’ rating on the bank with a revised price target of Rs 1500. We value the bank at 1.9 times FY24 P/BV for an FY23E/24E/25E RoE profile of 13.8/14.4%/15.6%,” YES Securities said.
