IndusInd Bank Upgraded to 'Hold' by MarketsMOJO, Strong Fundamentals and Growth Potential

IndusInd Bank, a largecap private bank, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the bank's strong long-term fundamental strength, with a Tier 1 Capital Adequacy Ratio of 16.62%. This signifies that the bank has a robust due diligence system in place when giving out loans.
In addition, IndusInd Bank has shown healthy long-term growth, with its Net Interest Income (excluding other income) growing at an annual rate of 14.59% and Net Profit at 19.41%. This, along with a ROA of 1.7, makes the stock attractive in terms of valuation, with a Price to Book Value of 1.6.

However, the bank's recent financial results for June 2024 have been flat, with its Operating Profit to Net Sales (Q) at a low of 11.84% and Gross NPA (Q) at a high of 2.02%. Its PBDIT (Q) has also been at a low of Rs 1,485.44 crore. This has resulted in the stock being in a bearish range, with its technical trend deteriorating from Mildly Bearish to -2.82% returns since October 16, 2024. The MACD and Bollinger Band technical factors also indicate a bearish trend.

Moreover, 45.48% of the promoter shares are pledged, which can put additional downward pressure on the stock prices in falling markets.

Overall, while IndusInd Bank has shown strong long-term growth and fundamental strength, its recent financial performance and technical trends suggest a hold on the stock. It has also underperformed the BSE 500 in the last 3 years, 1 year, and 3 months, making it a below par performer in the long and near term. Investors are advised to carefully consider these factors before making any investment decisions.