BSE:532187

Stock Analysis Report

Executive Summary

IndusInd Bank Limited provides various banking products and services to individuals, NRIs, business owners, corporates, and government and financial institutions.


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


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Share Price & News

How has IndusInd Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532187's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

532187

-0.3%

IN Banks

-0.08%

IN Market


1 Year Return

-19.2%

532187

8.1%

IN Banks

9.5%

IN Market

Return vs Industry: 532187 underperformed the Indian Banks industry which returned 8.1% over the past year.

Return vs Market: 532187 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

532187IndustryMarket
7 Day0.5%-0.3%-0.08%
30 Day-11.3%-0.7%0.01%
90 Day-18.3%-2.6%3.2%
1 Year-18.8%-19.2%8.5%8.1%11.5%9.5%
3 Year-10.6%-11.8%12.8%11.6%23.6%16.7%
5 Year39.8%36.8%11.5%7.9%35.5%22.9%

Price Volatility Vs. Market

How volatile is IndusInd Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

Top BSE High Growth Stock

1 year ago | Simply Wall St

Top BSE High Growth Stock

1 year ago | Simply Wall St

Top BSE High Growth Stock

Valuation

Is IndusInd Bank undervalued compared to its fair value and its price relative to the market?

17.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532187 (₹1181.75) is trading above our estimate of fair value (₹336.06)

Significantly Below Fair Value: 532187 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532187 is good value based on its PE Ratio (17.6x) compared to the Banks industry average (18.1x).

PE vs Market: 532187 is poor value based on its PE Ratio (17.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532187's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532187 is overvalued based on its PB Ratio (2.4x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is IndusInd Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.9%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as IndusInd Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has IndusInd Bank performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532187 has high quality earnings.

Growing Profit Margin: 532187's current net profit margins (32.1%) are higher than last year (29.9%).


Past Earnings Growth Analysis

Earnings Trend: 532187's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: 532187's earnings growth over the past year (33.4%) exceeds its 5-year average (18% per year).

Earnings vs Industry: 532187 earnings growth over the past year (33.4%) exceeded the Banks industry 25.5%.


Return on Equity

High ROE: 532187's Return on Equity (13.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IndusInd Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 532187 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532187's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: 532187's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 532187 has a sufficient allowance for bad loans.

Low Risk Liabilities: 532187's liabilities are made up of primarily low risk sources of funding.

Loan Level: 532187 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 532187's loans are broadly funded by customer deposits.

Level of Bad Loans: 532187 has a high level of bad loans (2.22%)


Next Steps

Dividend

What is IndusInd Bank's current dividend yield, its reliability and sustainability?

0.63%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532187's dividend (0.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532187's dividend (0.63%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 532187's dividends per share have been stable in the past 10 years.

Growing Dividend: 532187's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.2%), 532187's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.0yrs

Average management tenure


CEO

Romesh Sobti (69yo)

12yrs

Tenure

₹44,213,000

Compensation

Mr. Romesh Sobti has been the Chief Executive Officer and Managing Director of IndusInd Bank Limited since February 1, 2008. Mr. Sobti has 33 years of banking experience in large state owned and multinatio ...


CEO Compensation Analysis

Compensation vs Market: Romesh's total compensation ($USD615.50K) is below average for companies of similar size in the Indian market ($USD1.10M).

Compensation vs Earnings: Romesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Romesh Sobti
MD, CEO & Director12yrs₹44.21m0.13% 1.1b
Sharadchandra Zaregaonkar
Chief Financial Officer24.4yrs₹48.44m0.0018% 15.0m
Haresh Gajwani
Senior VP & Company Secretary0yrs₹8.09m0.000010% 81.9k
K. Sridhar
President0yrsno data0.075% 612.2m
Paul Abraham
Chief Operating Officer12yrsno data0.032% 258.8m
Roopa Satish
Country Head of Corporate0yrsno datano data
M.K. Kandadai
Chief Technology Officer8.3yrsno data0.0029% 24.0m
Sanjay Mallik
Head of Investor Relations & Strategy0yrsno data0.0024% 19.5m
Murlidhar Lakhara
Chief Compliance Officer2.3yrsno datano data
Zubin Mody
Head of Human Resources14.2yrsno data0.0049% 39.7m

12.0yrs

Average Tenure

Experienced Management: 532187's management team is seasoned and experienced (12 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Romesh Sobti
MD, CEO & Director12yrs₹44.21m0.13% 1.1b
N. Kumar
Executive Vice President of Retail Assets Division0yrsno datano data
T. T. Mohan
Non-Executive Independent Director3.8yrs₹3.36m0.00055% 4.5m
Bhavna Doshi
Additional Independent Non Executive Director0.08yrsno datano data
Sanjay Asher
Additional Director0.3yrsno datano data
Akila Krishnakumar
Non-Executive Independent Director1.5yrs₹1.36mno data
Sanjeev Asthana
Additional Non Executive Independent Director0.2yrsno datano data
Arun Tiwari
Part-time Chairman0.08yrs₹2.01mno data
Shanker Annaswamy
Non-Executive Independent Director4.1yrs₹3.02mno data
Rajiv Agarwal
Additional Non Executive Independent Director0.9yrs₹167.22kno data

0.9yrs

Average Tenure

62yo

Average Age

Experienced Board: 532187's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 532187 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.6%.


Top Shareholders

Company Information

IndusInd Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IndusInd Bank Limited
  • Ticker: 532187
  • Exchange: BSE
  • Founded: 1994
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹819.040b
  • Shares outstanding: 693.07m
  • Website: https://www.indusind.com

Number of Employees


Location

  • IndusInd Bank Limited
  • Tower 1, 8th Floor
  • One Indiabulls Centre
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532187BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1998
INDUSINDBKNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1998
IDUSBBDL (Bourse de Luxembourg)GDR REG SLUUSDApr 2007
632187BSE (Mumbai Stock Exchange)INR10(FOREIGN PREMIUM)ININRJun 2015

Biography

IndusInd Bank Limited provides various banking products and services to individuals, NRIs, business owners, corporates, and government and financial institutions. It operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company offers current, savings, defense and corporate salary, and RFC accounts; and fixed and FCNR, sweep in/out deposits, senior citizen schemes, young saver deposits, and recurring and RFC deposits, as well as Rupee multiplier products. It also provides home, personal, car, two wheeler, gold, agricultural, and medical equipment loans, as well as loans against property and securities; business loans; and loan on credit cards. In addition, the company offers transaction banking services, including letters of credit/guarantees, structured trade and export finance, and import finance solutions, as well as cash management and remittance services; investment products, such as demat account, mutual fund, gold bond, and equity trading; project finance, debt underwriting and placement, advisory related to M&A and equity raise, structured credit products, etc.; and health, general, life, and card protection insurance. Further, it provides debit, credit, forex, and commercial cards; individual outward remittances, foreign currency bank notes and demand drafts, and travellers cheque; financial inclusion products; trade and foreign exchange accounts; real estate financing and bullion services; correspondent banking services; and forex and derivative desk, information and advisory, and remittances through forex channel services. As of September 30, 2019, the company had 1,753 branches/banking outlets and 2,662 ATMs in India, as well as representative offices in London, Dubai, and Abu Dhabi. IndusInd Bank Limited was founded in 1994 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 12:50
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.