One of India’s top private sector banks is IndusInd Bank Ltd. Since its founding in 1994, the bank has grown to include over 2,000 branches and ATMs around the nation. In addition to savings and current accounts, loans, credit cards, insurance, and investment services are just a few of the financial services and products the bank provides. IndusInd Bank has received praise over the years for its client-centered strategy, cutting-edge goods, and tech-driven services. We shall look into IndusInd Bank’s operations, history, and performance in this article to better comprehend its place in the Indian banking sector.
This article focuses on analyzing the share price target of IndusInd Bank for the period between 2023 and 2030. Additionally, it delves into exploring the potential factors that may impact the bank’s future performance.
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INDUSIND BANK IN RECENT NEWS
- IndusInd Bank, in its Q1 results, has reported a notable increase in its Profit After Tax (PAT) by 33% year-on-year (YoY) to reach Rs 2,124 crore. The bank’s performance aligns with market expectations, meeting estimates for the quarter.
- The board of IndusInd Bank is scheduled to convene on July 20 to discuss and evaluate options for fundraising. The bank is actively exploring various avenues to raise capital, considering the evolving market conditions and its growth plans.
- IndusInd Bank has witnessed a decline in its gross non-performing assets (GNPA) from 2.35 percent in the previous year to 1.94 percent. This improvement indicates a positive trend in the bank’s asset quality, showcasing its effective management of non-performing loans.
HOW TO PURCHASE INDUSIND BANK SHARES?
You can purchase shares of IndusInd Bank through the following trading platforms:
INDUSIND BANK SHARE PRICE TARGET 2023
|INDUSIND BANK SHARE PRICE TARGET 2023||Maximum Price||Minimum Price|
According to the table above, IndusInd Bank’s share price prediction for 2023 shows an overall bullish trend, with a significant uptrend expected during the latter half of the year. The maximum price predicted for December 2023 is ₹1,482.86, indicating a growth percentage of approximately 64% from the minimum price recorded in October 2023.
The bank’s share price is predicted to remain on a positive trajectory with only minor fluctuations during the first half of the year. However, the real surge in the share price is expected from July 2023 onwards, with the maximum predicted price for September 2023 being ₹1,492.80, a growth percentage of approximately 30% from the minimum price recorded in September 2023.
INDUSIND BANK SHARE PRICE TARGET 2024
|INDUSIND BANK SHARE PRICE TARGET 2024||Maximum Price||Minimum Price|
IndusInd Bank’s share price target for 2024 shows an overall positive trend with the maximum predicted price of ₹2,076.06 in December 2024, representing an approximate growth percentage of 74% from the minimum price recorded in January 2024. The minimum predicted price for January 2024 is ₹1,237.03.
The bank’s share price is expected to fluctuate throughout the year, with a steady increase projected from May 2024 onwards. The maximum predicted price in October 2024 is ₹1,938.43, representing a growth percentage of approximately 77% from the minimum price recorded in May 2024.
Overall, the maximum and minimum share price targets for 2024 indicate a positive trend for IndusInd Bank, with significant growth potential. It is important to keep in mind that these predictions are based on various market factors and may be subject to change. However, investors and shareholders can look forward to a positive outlook for IndusInd Bank’s share price in 2024.
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INDUSIND BANK SHARE PRICE TARGET 2025
|INDUSIND BANK SHARE PRICE TARGET 2025||Maximum Price||Minimum Price|
IndusInd Bank’s share price targets for the year 2025 shows a significant growth trend. The stock is expected to rise to a maximum target of ₹2,518.30 and a minimum target of ₹1,607.48. The year 2025 is likely to be bullish for IndusInd Bank’s stock, as the maximum price target shows a growth of over 20% from the previous year. The minimum price target also reflects a positive uptrend, which indicates a growth of around 18% from the previous year. Overall, based on the predictions, investors may expect a positive performance from IndusInd Bank’s stock in the year 2025.
INDUSIND BANK SHARE PRICE TARGET 2026 TO 2030
|INDUSIND BANK SHARE PRICE TARGET BY||Maximum Price||Minimum Price|
IndusInd Bank’s share price is expected to experience fluctuation in the coming years. The maximum price for 2026 is predicted to be around ₹1,762.81, while the minimum price is expected to be around ₹1,233.97. In 2027, the maximum price is expected to decrease to ₹1,498.39, while the minimum price is expected to be around ₹1,048.87. However, the bank’s share price is predicted to recover in 2028, with the maximum price expected to be around ₹2,697.10 and the minimum price around ₹1,887.97.
The upward trend is expected to continue in 2029 and 2030, with the maximum price predicted to be around ₹5,540.26 and ₹6,169.83, respectively, and the minimum price expected to be around ₹3,878.18 and ₹4,318.88, respectively. It is essential to note that these are only predictions based on the available data, and the actual share price may vary depending on various factors such as market conditions and company performance.
FINANCIAL STRENGTH OF INDUSIND BANK (2019 TO 2023)
|Year||Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
|Revenue (Rs crore)||22,261||28,783||29,000||30,822||36,368|
|Interest (Rs crore)||13,415||16,724||15,472||15,822||18,776|
|Expenses (Rs crore)||9,283||12,611||15,997||15,903||15,899|
|Financing Profit (Rs crore)||-437||-553||-2,469||-902||1,693|
|Financing Margin %||-2%||-2%||-9%||-3%||5%|
|Other Income (Rs crore)||5,647||6,951||6,559||7,397||8,166|
|Depreciation (Rs crore)||229||278||305||321||0|
|Profit before tax (Rs crore)||4,981||6,121||3,784||6,174||9,860|
|Net Profit (Rs crore)||3,301||4,418||2,836||4,611||7,390|
|EPS in Rs||54.77||63.70||36.68||59.52||95.24|
|Dividend Payout %||14%||0%||14%||14%||15%|
1. Revenue Growth: The bank has experienced consistent revenue growth over the years, with a significant increase from Rs 22,261 crore in March 2019 to Rs 36,368 crore in March 2023.
2. Interest and Expenses: The bank’s interest and expenses have also shown an upward trend. While interest costs have gradually risen, expenses remained relatively stable over the period.
3. Financing Profit: The bank’s financing profit improved from a negative value of Rs -437 crore in March 2019 to a positive value of Rs 1,693 crore in March 2023, indicating a significant turnaround in profitability.
4. Other Income: IndusInd Bank’s other income, which includes non-interest-based earnings, has consistently increased over the years, reaching Rs 8,166 crore in March 2023. This suggests the bank’s ability to generate income from diverse sources.
5. Profit before Tax: The bank’s profit before tax demonstrates a fluctuating trend. After a decline in March 2021, it rebounded strongly to Rs 9,860 crore in March 2023, indicating improved profitability.
6. Net Profit: IndusInd Bank’s net profit has shown volatility, with a decline in March 2021 followed by a substantial increase to Rs 7,390 crore in March 2023.
7. Earnings per Share (EPS): The bank’s EPS has consistently grown from Rs 54.77 in March 2019 to Rs 95.24 in March 2023, reflecting an upward trajectory in profitability on a per-share basis.
8. Dividend Payout: IndusInd Bank has maintained a consistent dividend payout percentage over the years, ranging from 0% to 15%.
Overall, the financial performance of IndusInd Bank demonstrates a positive growth trajectory, with improved revenue, profitability, and earnings per share. The bank’s ability to generate diverse income streams and its focus on managing expenses have contributed to its financial stability and growth.
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INDUSIND BANK SHARE PRICE TARGETS BY EXPERTS
- Motilal Oswal has issued a buy recommendation for IndusInd Bank Ltd., with a suggested target price of Rs 1450 for its shares.
- JM Financial has provided a target price of Rs 1375 for IndusInd Bank Ltd. shares and recommends investors to purchase them.
- LKP Securities suggests buying shares of IndusInd Bank Ltd. and sets a target price of Rs 1473.
POINTS TO NOTE WHILE INVESTING IN INDUSIND BANK SHARES:
- Company’s working capital requirements have reduced from 85.8 days to 67.2 days
- Company has low interest coverage ratio.
- Promoter holding has decreased over last quarter: -1.88%
- Promoter holding is low: 14.0%
- Company has a low return on equity of 11.2% over last 3 years.
- Contingent liabilities of Rs.9,53,434 Cr.
- Company might be capitalizing the interest cost
- Promoters have pledged 100% of their holding.
- Earnings include an other income of Rs.8,166 Cr.
The maximum share price target of IndusInd Bank in 2023 is Rs.1,482.86
The maximum share price target of IndusInd Bank in 2029 is Rs. 5,540.26
What is the financial performance of IndusInd Bank in the last five years?
IndusInd Bank has shown steady growth in its financial performance in the last five years. Its total income, revenue growth, and PAT have consistently increased, while provisions and contingencies have decreased in some years. The bank has also maintained a healthy net interest margin and net profit margin.
What is the dividend payout ratio for INDUSIND Bank?
Over the past five years, IndusInd Bank has maintained a dividend payout ratio fluctuating between 0% and 14.28%. This suggests that the bank may opt to retain a portion of its earnings for reinvestment purposes in the business rather than distributing them as dividends.
Currently, the recommendation for investing in IndusInd Bank’s shares is to maintain a “hold” or “neutral” position. The uncertainty surrounding the bank’s share price target is influenced by multiple factors. It is advisable to seek guidance from a financial advisor before making any investment decisions.
CONCLUSION: SHOULD YOU INVEST IN INDUSIND BANK SHARES IN 2023?
The current price-to-earnings (P/E) ratio of IndusInd Bank is not explicitly mentioned in the provided information. The P/E ratio is a key valuation metric that compares the bank’s stock price to its earnings per share (EPS). A lower P/E ratio generally suggests that the stock may be undervalued, while a higher P/E ratio could indicate an overvalued stock.
Positive Expert Opinions: Motilal Oswal, JM Financial, and LKP Securities have recommended buying shares of IndusInd Bank Ltd. This indicates a positive sentiment and suggests the potential for the bank’s stock to perform well.
Considering the positive expert opinions and the bank’s financial performance, we can anticipate potential growth in IndusInd Bank’s share price by 2025. The maximun price expected in 2025 is ₹2,518.30
It is essential to note that share prices are influenced by various factors, including market conditions, industry trends, and macroeconomic factors. Investors are advised to consider these factors and conduct thorough research before making any investment decisions.
Suhani Bhat, a student of Hansraj college, is a finance writer who takes deep interest in stock market, mutual funds, and other financial news. She writes for multiple finance blogs, including Financegradeup.com. Other than English, she also speaks Hindi.