Buy IndusInd Bank - Dolat Capital

We initiate coverage on IndusInd Bank with a Buy rating. Post smooth transition brought by incumbent senior management, the bank has been strengthening itself gradually in each of the key areas. Well-diversified retail loan book, more focus on relatively newer retail product lines and improvement in SA deposits hereon would aid margin.

Core fee income would continue robust performance with investment banking, trade finance and forex income. High Tier I capital warrants the bank's strong business growth without raising additional equity capital in near future.

We rate the stock as a Buy with a target price of Rs.434 at 3.1x ABV FY14. At current market price, the stock trades at 3.0x and 2.5x ABV FY13 and FY14 respectively.

Source : Equity Bulls

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