IndusInd Bank - Midcap Stock for Long Term
Suggested by: Mehraboon Irani of Centrum Broking
Source: http://www.moneycontrol.com
After Ramesh Sobti and team of senior executives from ABN AMRO took over, there has been a sea change as far as the performance of IndusInd Bank goes.
The net NPA coming down to 0.6% and should fall down further, RoE at 16.87% at present can only move up further. As far as CASA goes, at 22%, not very impressive but not very bad—but if you look at the CASA over the last three-four-five quarters, it is just going up. The bank is taking much more efforts. The corporate internet transaction, which they have started, increased the branches from 200 to 300 can only improve CASA further.
The share is trading at less than three times its book value. I am aware of the fact as to what the bank is planning to do. I am quite confident that the numbers will be very pleasing to people. There are people arguing that valuation wise the bank has become little bit expensive but after the new management has taken over the bank’s valuation need to be expensive and will always be expensive.
So even at the present price, there is a lot of money to be made for shareholders over the longer-term. If somebody wants an exposure in the banking space and in a scenario where inflation are interest rates are becoming dirty words. I think IndusInd Bank is the stock to be.
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