Strong Q1 builds case for IndusInd's re-rating; 50% upside likely: Analysts

IndusInd Bank Q1 review: For a stronger re-rating, IIB would need to demonstrate decline in stress formation and increase in deposit granularity, analysts said

IndusInd Bank shares surged 9.3 per cent to Rs 961 apiece on the BSE in Thursday's intra-day trade after the lender reported stellar June quarter results on Wednesday. The shares ended 8 per cent higher at Rs 950 as against a 0.51-per cent gain in the benchmark S&P BSE Sensex. 

Analysts see up to 49.5 per cent upside in the stock from current levels, as the bank gets closer to the end of Covid-19 pandemic blues, and the focus gradually shifts to core business performance. Moreover, they see a strong case of stock re-rating in the medium-term.

"IndusInd Bank (IIB)