IndusInd Shares Fall 19% After Q2 Results, Is It Worth Buying? IndusInd Share Price Highlights October 25, 2024

MOSL on IndusInd BK

Buy, TP Rs 1,500

Weak quarter; leading through short-term challenges

Reduce earnings estimates by 16.7%/8.7% in FY25/26, leading to RoA/RoE of 1.6%/13.6% in FY26

NIM drops sharply to 4.08%; MFI mix declines 149 bps to 9.2% of lending

Jefferies at IndusInd BK

Buy, TP reduced to Rs 1,470

Q2 disappointed with Rs 13 billion profit, -39% YoY, no estimates due to higher credit costs and lower NIM

Expect pressure to continue in 2HFY25 and moderate in FY26-27, resulting in a 13-25% drag on earnings

Value @1.3x FY26 Adj PB reasonable

GS on IndusInd BK

Buy, TP Rs 1,430

Weak Q2 with core-PPOP disappointing once again (down 8% QoQ) as it missed GSe by 8%

Credit costs increased partly due to contingency buffers, leading to PAT default by 40%.

Reduce the share for the year 25/26/27 by 19%/10%/9%

HSBC on IndusInd BK

Buy, TP reduced to Rs 1,510 from Rs 1,770

Microfinance lending has led to weakening performance.

Unfavorable movements in loan growth, NIM and loan costs were disappointing

Reduce EPS by 8.7-21.4% in FY25-27e

However, @1.3x BVPS in FY26, favorable risk/reward ratio