IndusInd Bank (INDUSINDBK)
TurnaroundFairStock Score: 38/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,020.8 |
| Market Cap | ₹79,534.67 Cr |
| P/E Ratio | 60.22 |
| ROCE | 6.47% |
| ROE | -3.14% |
| Dividend Yield | 0.15% |
| Profit Growth | 46.51% |
| Debt/Equity | 7.17 |
| Sales Growth | -9.19% |
| Free Cash Flow | ₹17,593 Cr |
| Promoter Holding | 15.82% |
| 52-Week Range | ₹710.6 — ₹1,077.85 |
| Sector | Banks |
| Book Value | ₹844.19 |
Strengths
- P/B of 1.03 means the market price is close to reported book value
- Latest quarter still produced a positive net profit of ₹128 Cr
- Free cash flow is strong at ₹17,593 Cr
- Piotroski F-score of 6/9 suggests moderate financial health
Concerns
- Profit growth down 90.87% and ROE negative at -3.14%
- Sales growth is negative at -8.67% and dividend yield is zero
- Altman Z-score of 0.40 and EV/EBITDA of 2039 point to financial stress
- DCF intrinsic value of ₹20 is far below the current market price
AI Analysis
At ₹860.45, IndusInd Bank trades at roughly 1.03 times book value of ₹832.18. On the surface, that looks like the kind of margin of safety Graham would admire. But book value is only a starting point; a bank must earn a decent return on that book. Today, IndusInd's ROE is negative at -3.14%, and profit growth has collapsed by 90.87%. The latest quarter net profit of ₹128 Cr on sales of ₹11,373 Cr is barely a pulse. A lender that cannot earn its cost of equity is gradually destroying shareholder capital. The debt/equity of 7.17 is not unusual for a bank, but combined with an Altman Z-score of 0.40 and EV/EBITDA of 2039, it reminds me that leverage amplifies pain as well as gain. I do not give much weight to the DCF value of ₹20 for a regulated financial business, but it is a caution flag nonetheless. Positives exist: Piotroski F-score of 6/9, positive free cash flow of ₹17,593 Cr, and a small quarterly profit suggest the franchise is not broken. Promoter holding of 15.82% is lower than I like, and with zero dividend yield, shareholders are entirely dependent on a recovery. This is a turnaround situation, not a stalwart. I need to see sustained profitability, a return to positive growth, and proof that book value is not eroding before I can call this a compelling value investment. At 1.03 times book, there is some downside cushion, but in banking, assets and liabilities are opinions. I would wait for clearer evidence of earnings stabilisation.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer