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IndusInd Bank Top Index Gainer, Brokerages See Up To 26% Upside

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Shares of IndusInd Bank in intra-day deals on Thursday (October 1, 2020) saw a sharp rebound from previous sessions' losses to top the Nifty and Sensex gainers list. At around 12:20 pm, the stock traded higher by 6.08% or Rs. 32 at Rs. 558.75, while it hit an intra-day high of Rs. 560 per share on both the bourses.

IndusInd Bank Top Index Gainer, Brokerages See Up To 26% Upside
 

Brokerages are bullish on the stock of the private sector lender. LKP Securities has given a 'Buy' recommendation on the stock and set a target price of Rs. 705. "Core operating performance of IndusInd Bank remains healthy. A higher COVID provision is likely to safeguard the bank from credit disruption from COVID. Thus we recommend a buy with a price target of Rs 705 (based on 1.1 times FY22E Adjusted BVPS)," said LKP Securities.

Another broking house Emkay Global has given out a 'Hold' recommendation on the counter keeping the target price at Rs. 550, rolling forward on 0.9 times September 22E ABV. "We trim FY21E earnings by 22 percent due to up-fronting of provisions factoring in high LLP and raise FY23 estimates by 5 percent. We have also factored in the recent capital infusion of Rs 3,280 crore," Emkay said.

The brokerage is of the view that the Covid 19-led impact on bank's retail and SME loan book cannot be ruled out. Nonetheless, the lender's take on building huge credit reserves even at the cost of its near term earnings is just the correct way forward.

GoodReturns.in

Read more about: indusind bank
Story first published: Thursday, October 1, 2020, 12:46 [IST]
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