Hold IndusInd Bank - Geojit BNP Paribas

'Hold' IndusInd Bank – TP hiked to Rs.340

- The bank is doing better than estimated. Therefore, earning estimates have been raised upward by 2% for 2012, 6% for 2013 and 10% for 2014.

- Resultantly, target price has been hiked to Rs.340 and the stock is rated to 'hold' on.

- The bank has beaten estimates in various grounds such as margins, credit growth, fee income and asset quality.

- The bank has one of the best loan mix in the industry.

- It has the strategy to grow the consumer book and CASA to deliver a structural improvement in NIM. It is expected NIM improvement by 25 bps in FY13 and 15 bps in FY14.

- Cost to income is expected to decline to 46- 47% from 49% expected for FY12.

- ROA (Return on Assets) is expected to improve by 16 bps over FY12-14. This is after factoring higher credit cost.

- At the current price range of Rs.328, the stock looks fairly valued and maintain 'hold' rating.

Source : Equity Bulls

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