Investment in IndusInd Bank stocks a value bet, but tread with caution

Topics IndusInd Bank

The prolonged correction in banking stocks has tempted investors to look at underperformers. IndusInd Bank, despite its massive recovery from its all-time low of Rs 235 a share, is one such candidate thanks to its 65 per cent year-to-date underperformance. Trading below its book value (0.9x its FY22 estimated earnings), analysts at Nomura, UBS, and CLSA are positive, primarily for its beaten-down valuation. However, immediate upside may be capped considering the lender’s operational and balance sheet challenges. Two of IndusInd Bank’s critical segments — vehicle a.....

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