This is third of the midcap stocks to buy recommended by Mehraboon Irani in his CNBC TV-18 interview. Checkout the excerpts of his discussion on Indusind bank stock analysis and prospects for investing for long term investment portfolio.
" I have become fan of IndusInd Bank over the last one year and over the last two years after Ramesh Sobti and team of senior executives from ABN AMRO took over. That has been a sea change as far as the performance of IndusInd Bank goes. I have been meeting the management quite often and lots of conscious efforts are still being taken to improve the productivity efficiency and ultimately the bottomline of the bank.
The net NPA coming down to 0.6% and should fall down further, RoE at 16.87% at present can only move up further. As far as CASA goes, at 22%, not very impressive but not very bad—but if you look at the CASA over the last three-four-five quarters, it is just going up. The bank is taking much more efforts. The corporate internet transaction, which they have started, increased the branches from 200 to 300 can only improve CASA further.
The share is trading at less than three times its book value. I am aware of the fact as to what the bank is planning to do. I am quite confident that the numbers will be very pleasing to people. There are people arguing that valuation wise the bank has become little bit expensive but after the new management has taken over the bank’s valuation need to be expensive and will always be expensive.
So even at the present price, there is a lot of money to be made for shareholders over the longer-term. If somebody wants an exposure in the banking space and in a scenario where inflation are interest rates are becoming dirty words. I think IndusInd Bank is the stock to buy"
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