⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
INDUSINDBK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | INDUSINDBK | Market Cap | 69,832 Cr. | Current Price | 896 ₹ | High / Low | 1,087 ₹ |
| Book Value | 830 ₹ | Dividend Yield | 0.00 % | ROCE | 6.49 % | ROE | 4.15 % |
| Face Value | 10.0 ₹ | DMA 50 | 873 ₹ | DMA 200 | 863 ₹ | Chg in FII Hold | -2.72 % |
| Chg in DII Hold | 3.43 % | PAT Qtr | 161 Cr. | PAT Prev Qtr | -445 Cr. | RSI | 51.5 |
| MACD | 8.42 | Volume | 25,83,908 | Avg Vol 1Wk | 43,61,604 | Low price | 605 ₹ |
| High price | 1,087 ₹ | Debt to equity | 6.73 | 52w Index | 60.3 % | Qtr Profit Var | -88.5 % |
| EPS | -23.6 ₹ | Industry PE | 15.8 |
📊 Core Financials
- Revenue & Profitability: PAT turned positive at 161 Cr. from a loss of -445 Cr. in the previous quarter, but quarterly profit variation (-88.5%) highlights instability.
- Margins: ROE at 4.15% and ROCE at 6.49% are weak, reflecting poor efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 6.73 is very high, typical for banks but still a leverage risk.
- Cash Flow: Dividend yield of 0.00% indicates no shareholder payout, limiting investor reward.
💹 Valuation Indicators
- P/E Ratio: Not applicable due to negative EPS (-23.6 ₹).
- P/B Ratio: Current Price (896 ₹) / Book Value (830 ₹) ≈ 1.08, fair valuation relative to book value.
- PEG Ratio: Not available, limiting growth-adjusted valuation analysis.
- Intrinsic Value: Current price near DMA 50 (873 ₹) and DMA 200 (863 ₹), suggesting technical support but fundamentals remain weak.
🏦 Business Model & Competitive Advantage
- IndusInd Bank operates as a private sector bank with diversified lending across retail, corporate, and SME segments.
- Competitive advantage lies in strong brand presence and diversified portfolio, but profitability challenges persist.
- Overall health is weak due to negative EPS, low returns, and high leverage.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer entry between 850 ₹ – 870 ₹, closer to technical support levels.
- Long-Term Holding: Risky for conservative investors due to weak fundamentals. Suitable only for speculative investors betting on turnaround in profitability.
✅ Positive
- PAT turned positive (161 Cr. vs -445 Cr.).
- Book value (830 ₹) supports fair valuation with P/B at 1.08.
- DII holdings increased (+3.43%), showing domestic institutional confidence.
⚠️ Limitation
- Negative EPS (-23.6 ₹) limits valuation metrics.
- Weak ROE (4.15%) and ROCE (6.49%).
- High debt-to-equity ratio (6.73) reflects leverage risk.
- No dividend yield, limiting investor reward.
📉 Company Negative News
- FII holdings decreased (-2.72%), showing reduced foreign investor confidence.
- Quarterly profit variation (-88.5%) highlights earnings instability.
📈 Company Positive News
- PAT turned positive QoQ, showing early signs of recovery.
- DII holdings increased significantly, reflecting domestic support.
🏭 Industry
- Industry PE at 15.8 highlights stronger profitability among peers compared to IndusInd Bank.
- Banking sector growth driven by credit expansion and digital adoption.
- Competition from private peers with stronger fundamentals remains a challenge.
🔎 Conclusion
- IndusInd Bank shows slight improvement in profitability but remains fundamentally weak with negative EPS and low returns.
- Valuation is fair relative to book value, but leverage and earnings instability are major concerns.
- Best suited for speculative investors entering near 850–870 ₹, while conservative investors should avoid until profitability stabilizes.