stock recommendations: Hot Stocks: What should investors do with IndusInd Bank, ICICI Lombard and ICICI Prudential Life Insurance post Q3 results?

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

JP Morgan on IndusInd Bank: Overweight| Target Rs 1400
JPMorgan maintained an overweight rating on IndusInd Bank post the December quarter results with a target price of Rs 1400.

The core PPOP rose over +20% on a YoY basis and was largely driven by loan growth of 19% on a YoY basis. The net interest margins (NIMs) expanded by 3bps on a QoQ basis despite a 37bps rise in the cost of deposits.

BofA Securities on IndusInd Bank: Buy| Target Rs 1500
BofA Securities maintained its buy rating on IndusInd Bank post the December quarter results with a target price of Rs 1500.

It is among the top picks for the year 2023. Strong loan growth momentum was led by vehicles.

Jefferies on IndusInd Bank: Buy| Target Rs 1600
Jefferies maintained its buy rating on IndusInd Bank post the December quarter results with a target price of Rs 1600.

IndusInd Bank reported a profit for the December quarter which was ahead of estimates with better NII & lower opex. NIM expansion of 17bps YoY was encouraging.

“Slippages were down QoQ to 2.6% of past year loans, but gross NPLs rose QoQ due to lower write-off; bank utilised Rs5bn from buffers & still carries 0.8% of loans as buffers,” said the note.

Kotak Institutional Equities on ICICI Prudential Life: Buy| Target Rs 650
Kotak Institutional Equities maintained its buy rating on ICICI Prudential Life with a target price of Rs 650 post the December quarter results.

“We believe that the diminishing share of ICICI Bank’s business (15% of APE in 3QFY23) will incrementally reduce the impact of its declining business on ICICI Prudential Life,” said the note.

“While the insurer’s diversified channel and product mix should support medium-term growth, we do not find any levers of margin expansion,” it said.

ICICIdirect on ICICI Lombard General Insurance: Hold| Target Rs 1300
ICICIdirect maintained its hold rating on ICICI Lombard General Insurance with a target of Rs 1300 post the December quarter results.

ICICI Lombard reported a mixed performance. “Rolling to FY25E, we value ICICI Lombard at 2.1x FY25E premium (50% weight), 1.1x FY25E float (50% weight), and maintain our target price at Rs 1300/share,” said the note.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)