Stock Outlook: Good investment opportunity in IndusInd Bank Stock

by khalid on 15/10/2011 · 0 comments

From investment perspective for a period of 12 to 18 months IndusInd Bank can be a good buy for investors. At the current levels the stocks seems to be very attractive as compared to their last year compound annual growth rate of about 25 percent. The bank asset size stands at Rs 45000 Cr for last year. For this year it should grow 20 by percent CAGR in the next three years which will make the assets size close to about 67000 Cr. The company is growing at 97 percent CAGR profit growth which is about 520-580 Cr and it will be doubled in the next 3 years to about 950-1000 Cr.

Indusind Bank stock can perform well in its forthcoming financial results. The income has a good contribution mix of which 65 per cent comes from the interest side where as 35 percent is contributed from fee side. With the company focusing more on the secured loan side we can expect quality asset performance.

While looking on the valuation front the stock seems to be equally attractive. Presently the stock is trading two times price to book(PE) value for FY 13 and about 2.2- 2.3 times from FY12. From viewpoint of dividend yield the stock is not at all expensive at the current levels. The stock is available at 1.3-1.4 percent dividend yield. The stock price should double within a 12 months horizon.

 “Bell the bull says: Investors can double their investment in 12 months time.”

 

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