BSE:532187

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

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

3.3%

532187

1.2%

IN Banks

1.3%

IN Market


1 Year Return

-66.4%

532187

-32.6%

IN Banks

-8.7%

IN Market

Return vs Industry: 532187 underperformed the Indian Banks industry which returned -32.6% over the past year.

Return vs Market: 532187 underperformed the Indian Market which returned -8.7% over the past year.


Shareholder returns

532187IndustryMarket
7 Day3.3%1.2%1.3%
30 Day17.4%4.8%5.1%
90 Day29.1%28.4%30.2%
1 Year-66.2%-66.4%-32.5%-32.6%-7.0%-8.7%
3 Year-67.8%-68.2%-30.6%-31.2%1.7%-3.0%
5 Year-45.2%-46.3%-15.7%-17.4%27.6%17.9%

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

2 years ago | Simply Wall St

Top BSE High Growth Stock

2 years ago | Simply Wall St

Top BSE High Growth Stock

2 years 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?

7.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532187 (₹495.95) is trading above our estimate of fair value (₹241.82)

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 (7.7x) compared to the Banks industry average (15.8x).

PE vs Market: 532187 is good value based on its PE Ratio (7.7x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: 532187 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 532187 is overvalued based on its PB Ratio (1x) 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 1 analyst?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532187's forecast earnings growth (25.2% per year) is above the savings rate (7.2%).

Earnings vs Market: 532187's earnings (25.2% per year) are forecast to grow faster than the Indian market (18.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 532187's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 532187's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 532187's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has IndusInd Bank performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532187 has a high level of non-cash earnings.

Growing Profit Margin: 532187's current net profit margins (31%) are higher than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: 532187's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: 532187's earnings growth over the past year (34.9%) exceeds its 5-year average (17.2% per year).

Earnings vs Industry: 532187 earnings growth over the past year (34.9%) exceeded the Banks industry 19.9%.


Return on Equity

High ROE: 532187's Return on Equity (12.8%) is considered low.


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


Financial Institutions Analysis

Asset Level: 532187's Assets to Equity ratio (8.8x) is low.

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

Low Risk Liabilities: 74% of 532187's liabilities are made up of primarily low risk sources of funding.

Loan Level: 532187 has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: 532187's Loans to Deposits ratio (102%) is appropriate.

Level of Bad Loans: 532187 has a high level of bad loans (2.5%).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 532187's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 532187's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532187's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532187's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532187 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532187's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Sumant Kathpalia

0.33

Tenure

Mr. Sumant Kathpalia serves as Managing Director and Chief Executive Officer of IndusInd Bank Ltd. since March 24, 2020 and serves as its Additional Director since March 24, 2020. Mr. Kathpalia served as t ...


Leadership Team

NamePositionTenureCompensationOwnership
Sharadchandra Zaregaonkar
CFO & Country Head of Corporate Services24.83yrs₹48.44m0.0073% 24.7m
Haresh Gajwani
Senior VP & Company Secretaryno data₹8.09m0.000010% 33.8k
Sumant Kathpalia
MD, CEO & Additional Director0.33yrno data0.081% 272.3m
K. Sridhar
Presidentno datano data0.075% 252.4m
Ramesh Ganesan
Head of Global Market Operations & Technology0.25yrno data0.016% 53.6m
Roopa Satish
Country Head of Corporateno datano datano data
Sanjay Mallik
Country Head of Investor Relationsno datano data0.0016% 5.3m
Murlidhar Lakhara
Chief Compliance Officer2.67yrsno datano data
Zubin Mody
Chief Human Resources Officer14.58yrsno data0.0048% 16.4m
Arvind Jain
Executive Vice Presidentno datano datano data

2.7yrs

Average Tenure

Experienced Management: 532187's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sumant Kathpalia
MD, CEO & Additional Director0.33yrno data0.081% 272.3m
N. Kumar
Executive Vice President of Retail Assets Divisionno datano datano data
T. T. Mohan
Non-Executive Independent Director4.17yrs₹3.36m0.00055% 1.9m
Bhavna Doshi
Additional Independent Non Executive Director0.50yrno datano data
Sanjay Asher
Additional Director0.75yrno datano data
Akila Krishnakumar
Non-Executive Independent Director1.92yrs₹1.36mno data
Sanjeev Asthana
Additional Non Executive Independent Director0.58yrno datano data
Arun Tiwari
Chairman of the Board0.50yr₹2.01mno data
Shanker Annaswamy
Non-Executive Independent Director4.5yrs₹3.02mno data
Rajiv Agarwal
Additional Non Executive Independent Director1.33yrs₹167.22kno data

0.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 532187's board of directors are not considered experienced ( 0.8 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 15%.


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: ₹337.940b
  • Shares outstanding: 693.57m
  • Website: https://www.indusind.com

Number of Employees


Location

  • IndusInd Bank Limited
  • One Indiabulls Centre
  • Tower 1, 8th Floor
  • 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 EACH REPR 1 ORD SHS 'REG S'LUUSDApr 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 Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking business segments. 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, national pension system, 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 travelers cheque; financial inclusion products; trade and foreign exchange accounts; real estate developer financing and bullion services; correspondent banking services; and forex and derivative desk, information and advisory, and remittances through forex channel services. As of December 31, 2019, the company had 1851 branches/banking outlets and 2721 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 Analysis2020/07/06 12:36
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.