FY21 hard for IndusInd: Brokerages
FY21 hard for IndusInd:
Brokerages expect IndusInd Bank to continue to implement stress on asset quality in the short term. Analysts believe that high credit and low-income costs could weigh IndusInd’s profits over the current financial year, but a majority have retained the ‘buy‘ rating as they expect the income from FY22 to recover.
In addition, CLSA has increased the target price from Rs 595 to Rs 610 and maintained a “buy” rate, as it anticipates that IndusInd Bank will rebound its earnings from FY 22. Kotak Institutional Equities held the target price of Rs 600 ‘add’ rate. The Indusind Bank ‘buy’ and a revised target price for Rs 520 from Rs 510 retained by Jefferies.
IndusInd’s income in FY21 reduced by high credit costs and weak topline, Jefferies said, with a recovery expected from FY22.
In the March quarter, the bank’s gross NPA ratio grew to 2.45%. Ambit kept the ‘sales’ and updated Rs 364 target price rating of Rs 355m 2.18% and net non-performing assets to 0.91% compared to 1.05% a quarter earlier.
JP Morgan downgraded from ‘neutral’ and the updated target price has been upgraded to Rs 375 from Rs 350. “We expect that the risks of asset quality will remain high in the near term, given the growing economy and historical uncertainties inherent in the company’s business back book,” JP Morgan said.
Credit Suisse held the inventory’s “underperformance” with Rs 430 target price. The brokerage anticipates that the lender will rise below 10% in the current fiscal year.
April 29th Stock Market
Besides, on the third day of the week, the stock market trading with the bullish trend. The Sensex traded with a gained 329.26 points reached 32,443.78 level with 1.03% up. Whereas, Nifty traded with a gain of 98.25 points reached 9,479.15 level with 1.05% up.
In the border market, the S&P BSE Midcap traded with a gain of 127.93 points reached 11,850.81 with 1.09% up. Whereas, S&P BSE SmallCap traded with a gain of 110.62 points reached 10,973.16 with 1.02% up.