Best Stocks to Buy in India for Long term 2022 – Indusind Bank Ltd

Our 15th company in the Series of Best Stocks to Buy in India for Long term 2022 is Indusind Bank Ltd.

This company is good for investing purpose or not ?

Let’s start with the Company profile

Company Profile :

IndusInd Bank Limited is engaged in banking and para-banking services. The Bank is involved in accepting deposits, such as savings accounts, current accounts and fixed deposits, and banking solutions.

Now Let’s check the important fundamental figures of this company. This is a large cap company with Market Cap ₹70,015cr. We can check more fundamental details below in depth:

Company Fundamental Detail :

PE Ratio: 23.90

Sector PE Ratio: 28.17

PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.

PB Ratio : 1.61

Sector PB Ratio : 2.38

PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.

Dividend Yield : 0.55%

Sector Dividend Yield : 0.54%

Dividend of this company is high than Sector’s dividend. So it’s Below Average PB than the peers of this company.

ROE: 6.58%

ROCE: 7.75%

ROE (Return on equity) and ROCE (Return on capital equity) is Below Average

According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:

Company Financial Detail

YearRevenue(cr.)Profit(cr.)
202135,500.682,930.11
202035,735.504,458.19
201927,907.873,300.75
201822,030.853,606.11

We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2021 2020 2019 2018
3,19,758.322,72,770.442,51,494.671,98,054.03

Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 3,19,758.32 Cr. debt.

Let’s check the Free Cash flow of the company

Free Cash flow

2021 2020 2019 2018
44,634.52-13,327.82-7,032.41-20,936.23

Asset Level: Indusind Bank’s Assets to Equity ratio (8.4x) is low.

Allowance for Bad Loans: Insufficient data to determine if Indusind Bank has a sufficient allowance for bad loans.

Low Risk Liabilities: 82% of Indusind Bank’s liabilities are made up of primarily low risk sources of funding.

Loan Level: Indusind Bank has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: Indusind Bank’s Loans to Deposits ratio (80%) is appropriate.

Level of Bad Loans: Indusind Bank has a high level of bad loans (2.8%).

Share Holding Pattern

Promotor HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 202116.54% 51.44%10.22%8.74%13.05%
Mar 202116.54%52.05%9.81%7.89%13.71%
Dec 202016.56%50.91%10.40%7.67%14.47%
Sep 202016.56%52.33%10.11%7.21%13.79%

Above table showing there is no big change in Promotors holding which is 16.54% in June 2021. FIIs invested in June 2021 with 51.44% and retail investor is 13.05%.

Investment Checklist for Indusind Bank Ltd.

  • The company is currently profitable
  • High level of non-cash earnings
  • Unstable dividend track record
  • Significant insider selling over the past 3 months
  • Shareholders have been diluted in the past year
  • Earnings have grown by 3.6% per year over past 5 years
  • Share price has been stable over the past 3 months
  • Profit margins improved or Indusind Bank became profitable
  • At least 3 years of financial data is available
  • Revenue is meaningful (₹139B)
  • Market cap is meaningful (₹700B)
  • Indusind Bank does not have negative shareholders equity.

According to its historical performance we can predict stock target.

Entry Buying Zone : Premium members can see only

Target: Premium members can see only

Time Horizon:Premium members can see only

Risk Profile: Premium members can see only

Hope you liked Our 15th company in the Series of Best stocks to buy in India for Long term 2022. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss

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