MOSL: MOrning India (20/October/22): 1. IndusInd Bank (RoA expansion on track; asset quality improves further); 2. Nestlé India; 3. UltraTech Cement; 4. Metro Brands; 5. AU Small Finance Bank; 6. Tata Communica
MOrning India (20/October/22): 1. IndusInd Bank (RoA expansion on track; asset quality improves further); 2. Nestlé India; 3. UltraTech Cement; 4. Metro Brands; 5. AU Small Finance Bank; 6. Tata Communications; 7. Persistent Systems
Today’s top research idea
IndusInd Bank: RoA expansion on track; asset quality improves further
- IndusInd Bank (IIB) reported a PAT of INR18.1b (+57% YoY; in line) with steady operating performance across all key metrics during the quarter.
- Loan growth remained steady at 18% YoY with traction in Corporate as well as Consumer Finance book. Sequential growth of 6.4% in corporate was driven by working capital loans. Within consumer, growth was broad based barring micro-finance (MFI). However, growth in MFI book should also pick up as disruption due to regulatory changes has been fully addressed.
- Fresh slippages moderated significantly to INR15.7b (2.6% annualized) led by corporate and consumer segments. GNPA/NNPA ratio improved by 24bp/ 6bp QoQ to 2.11%/0.61%, respectively. Restructured book declined to 1.5% in 2QFY23 v/s 2.1% in 1QFY23.
- We estimate PAT to report 40% CAGR over FY22-24, leading to 16% RoE in FY24E. Maintain BUY with a TP of INR1,450 (premised on 1.8x FY24E ABV).
Piping hot news
Relax! Today’s market mayhem for rupee is not a panic call and India is not in trouble
It was mayhem for the Indian rupee today as the local currency suffered a sudden plunge in the closing hours of trade to hit its lifetime low against the greenback. But, you can relax for a better tomorrow. The rupee's plunge today triggered panic with the thoughts of the ill effects of a currency that has only been moving southward, hurt by Federal Reserve's aggressive rate hike and surging US yields, even as yields of gilts on the other side of the Atlantic Ocean, the United Kingdom, eased after its government rolled back flurry of controversial tax-cut plans.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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