Morgan Stanley-IndusInd Bank Risk Reward Update-109077929

MJuly7,202410:38AMGMTUpdateIndusIndBankAsiaPacificMorganStanleyIndiaCompanyPrivateLimited+RiskRewardUpdateSumeetKariwala+91226118-2235EquityAnalystSumeet.Kariwala@morganstanley.comWhat’sChangedFromToRs2,800.00Rs2,935.00IndusIndBank(INBK.NS)Rs1,035.00Rs1,085.00BullCaseBearCaseIndusIndBank(INBK.NS,IIBIS)UpdatedComponentsIndiaFinancialsIndiaEPSInvestmentThesisStockRatingOverweightBullBaseBearScenariosIndustryViewAttractivePricetargetRiskRewardforIndusIndBank(INBK.NS)hasbeenupdated.Shrprice,close(Jul5,2024)Rs1,925.0052-WeekRangeRs1,434.25ReasonforchangeRs1,694.50-1,345.15FiscalYearEnding03/2403/25e03/26e03/27eWetrimourF25-27EPSestimatesby~4%eachaswefactorinthecompany'sJuneEPS(Rs)115.19131.21155.75186.81businessvolumeupdateandtweakourassumptionsprimarilyforloangrowthandPriorEPS(Rs)-136.60164.50196.92margins.Unlessotherwisenoted,allmetricsarebasedonMorganStanleyModelWareframework=Basedonconsensusmethodologye=MorganStanleyResearchestimatesOurpricetarget(basecase)remainsunchanged.AlthoughweloweroursustainableRoEandterminalgrowthassumptions,thisislargelyoffsetbyourvaluationrollingforwardbysixmonthstoSept-26.Ourscenariovaluesforbullandbearcaseincreaseby5%each,primarilyowingtovaluationrollforward.MorganStanleydoesandseekstodobusinesswithcompaniescoveredinMorganStanleyResearch.Asaresult,investorsshouldbeawarethatthefirm...