Home / Companies / News / Investment in IndusInd Bank stocks a value bet, but tread with caution

Investment in IndusInd Bank stocks a value bet, but tread with caution

Trading below its book value (0.9x its FY22 estimated earnings), analysts at Nomura, UBS, and CLSA are positive, primarily for its beaten-down valuation.

Premium

Two of IndusInd Bank’s critical segments — vehicle and microfinance (MFI) loans — are still in the nascent stages of recovery

Hamsini Karthik Mumbai

3 min read Last Updated : Sep 25 2020 | 1:30 AM IST

The prolonged correction in banking stocks has tempted investors to look at underperformers. IndusInd Bank, despite its massive recovery from its all-time low of Rs 235 a share, is one such candidate thanks to its 65 per cent year-to-date underperformance.

Trading below its book value (0.9x its FY22 estimated earnings), analysts at Nomura, UBS, and CLSA are positive, primarily for its beaten-down valuation.

However, immediate upside may be capped considering the lender’s operational and balance sheet challenges. Two of IndusInd Bank’s critical segments — vehicle and microfinance (MFI) loans — are still in the nascent stages of recovery.

These two

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in