INDIAN BANK – Undervalued & Safe Bet


Cmp – 125

52wk High/Low – 292/108

2 Years High – 427 High in Nov’17

Stock available At – 71% Discount From Its Nov’17 Highs & 58% Discount From Its 52week High of 292

🔷️Recently Indian Bank was Hammered due To supreme Court Verdict on Exposure To Telecom Sector .

🔷️ Indian Bank Dont Have Any Exposure To Telecom Sector.

🔷️Current Downfall Can be Buying Opportunity

🔷️Indian Bank reported Net profit of
Rs 3.6bn vs below our estimate of Rs 4.0bn on account on higher provision of Rs 9.1bn. Total Income increased 8% YoY to Rs 26.0 bn (better than our estimate of Rs 23.8 bn).

🔷️NII grew by 8% YoY to Rs 18.6 bn. Non Interest income was up 72% YoY to Rs 7.4bn. Opex was up 13% YoY to Rs 11.0bn.

🔷️Cost to income ratio declined by 233bps QoQ to 42.3%. Provisions increased by 14% QoQ to Rs 9.1 bn .

🔷️Asset Quality: GNPA ratio was 7.2% (-13 bps qoq) and NNPA was 3.54% (-30 bps qoq). Coverage improved 240 bps qoq to 68.7%. Slippages during the quarter were10.1bn

🔷️Balance Sheet growth : Loan book grew by 12% YoY to Rs 1868 bn while deposit grew by 15%

FY20 Q2 HighLights :

NP – 358 Cr Vs 150 Cr UP 139%.

Book Value Rs 395.

FY20 Expected EPS 29.64.

🔷️MKTCAP ONLY 6800 Cr Vs 253172 Cr Deposit, 194248 Cr Loan of which 61% Retail Loan

🔷️There are High chances that Indian Bank Can Give 100%+ Returns in next 24 To 36 Months

🔷️keep S/L as per Risk Management.

Disc – All views expressed are personal and only for Educational and study purpose.consult your financial advisor before investing or taking any position based on above article.

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