1 month ago
Brokerages Raise Target Price for IndusInd Bank
IndusInd Bank has recently reported its first-quarter earnings for FY27, which have led to brokerages like Nomura and Emkay Global raising their target prices for the bank's stock.
The bank has been making progress in controlling costs and improving the quality of its assets, which has made analysts optimistic about its future profitability.
Nomura has increased its target price to Rs 1,145, while Emkay Global has set it at Rs 1,200.
Both brokerages believe that the bank's efforts to reduce operating expenses and manage credit costs will lead to a gradual recovery in profitability.
However, they also note that margin expansion is still a medium-term goal.
The bank aims to achieve a return on assets (RoA) of 1% by the end of FY27, up from 0.45% in Q4 FY26.
Despite a slight dip in the share price over the past five trading days, the stock has shown significant growth over the past year, surging by 18%.
Brokerages Nomura and Emkay Global have raised their target prices for IndusInd Bank after its Q1FY27 earnings.
Nomura's target price is Rs 1,145, implying a 7% upside from the current market price.
Emkay Global's target price is Rs 1,200, implying a 12% upside from the current market price.
The bank aims to achieve a 1% RoA by the end of FY27, up from 0.45% in Q4 FY26.
IndusInd Bank's share price has surged 18% over the past year.
- Who
- IndusInd Bank, Nomura, Emkay Global Financial Services
- What
- Brokerages raising target price for IndusInd Bank after Q1 earnings
- Where
- India
- When
- After the first-quarter earnings of FY27
- Why
- Due to steady progress in cost control, improving asset quality, and gradual recovery in profitability
Optimistic View
Cautious View
Profitability Recovery
Optimistic View
Brokerages like Nomura and Emkay Global are optimistic about IndusInd Bank's profitability recovery due to cost control and asset quality improvement.
Cautious View
Some may argue that margin expansion is still a medium-term story and not immediately guaranteed.
Loan and Deposit Growth
Optimistic View
Nomura has raised its loan and deposit growth estimates for IndusInd Bank, citing lower operating expenses.
Cautious View
Others might be cautious about the bank's ability to sustain this growth given the competitive banking sector.
Asset Quality
Optimistic View
Emkay Global highlights improved asset quality with a moderating slippage ratio, leading to lower credit costs.
Cautious View
Skeptics might point out that past performance does not guarantee future results, especially in a volatile economic environment.
Key facts
- Current Market Price
- Rs 1,070 (approximate)
- Nomura Target Price
- Rs 1,145
- Emkay Global Target Price
- Rs 1,200
- Q1FY27 NIM
- 3.57%
- Q4FY26 RoA
- 0.45%
- Target RoA for FY27
- 1%
- Share Price Change (1 Year)
- 18%
Quotes
Nomura analyst
Brokerage analyst
“"Cost discipline now, margin recovery later."”
financialexpress.com









