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IndusInd Bank Limited (INDUSINDBK) Fair Value & Analysis

Financial Services · IN · Market cap ₹782B

IB IndusInd Bank Limited INDUSINDBK · BSE
Price₹1,003
Fair Value₹171.22
Upside-82.9%
Quality43/100
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Strengths

Moderate debt · generates free cash flow

Risks

!Trades 83% ABOVE our fair value of ₹171.22
!Mixed Growth
!Thin margins · 7.7% net margin
!Moderate moat 45/100
Mixed Growth
Thin margins · 7.7% net margin
Moderate debt · generates free cash flow
Moderate moat 45/100
Evidence: High Range ₹128.41 – ₹214.02 Share as image

Fair value as of: Aug 21, 2026

From 6 valuation models · updated today

Share price −5.8% over the past month.

Below-average quality, and screening another 83% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (₹214.02). The favourable scenario is already priced in.
  • Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹1,668 ₹636.27 Fair Value ₹171.22 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ₹636.27 – ₹1,668 · fair‑value band ₹128.41 – ₹214.02 · the ₹1,003 price screens above the ₹171.22 fair value. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

IndusInd Bank Limited (INDUSINDBK) currently trades at ₹1,003, while our model-based Fair Value estimate is ₹171.22, implying the stock looks roughly 82.9% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, IndusInd Bank Limited generated revenue of ₹173B at a net margin of 7.7%. Revenue grew 1.0% year over year. It earns a return on equity of 1.4%. Net debt stands at ₹107B. Fundamentals as of Aug 21, 2026

Our scenario range runs from ₹128.41 (bear case) to ₹214.02 (bull case); at ₹1,003, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 46% fair-value upside, at -83%, INDUSINDBK screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹595.75 ₹569.20 ₹439.35 76
Gordon GGM ₹158.63 ₹346.32 ₹582.69 70
P/E Multiple ₹111.29 ₹148.39 ₹185.48 63
All 6 models by family
Dividend Discount
Gordon GGM ₹158.63 ₹346.32 ₹582.69 70
DDM Multi-Stage ₹158.63 ₹283.69 ₹360.92 61
Multiples
P/E Multiple ₹111.29 ₹148.39 ₹185.48 63
P/B Multiple ₹145.53 ₹194.04 ₹242.56 55
Asset-Based
NCAV (Graham) ₹421.87 ₹565.31 ₹843.75 50
Economic Profit
Residual Income ₹595.75 ₹569.20 ₹439.35 76

Widest divergence: Economic Profit (₹569.20) versus Multiples (₹148.39). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹173B
Revenue growth (YoY) +1.0%
Net margin 7.7%
Return on equity 1.4%
Free cash flow ₹3.0B FY2026
P/E ratio 59.0
More key figures
Operating margin 27.3%
EPS (TTM) ₹17.00
EPS growth (YoY) +71.7%
Net debt ₹107B FY2024

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 42 · Market factors (momentum, volatility) 71

Profitability 13
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 22
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

IndusInd Bank Limited engages in the provision of various banking products and services to individuals, NRIs, business owners, corporates, and government and financial institutions. It operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations.

Full company description

IndusInd Bank Limited engages in the provision of various banking products and services to individuals, NRIs, business owners, corporates, and government and financial institutions. It operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company offers current, savings, defense, and corporate salary; fixed and FCNR, sweep in/out, time and term deposits; and senior citizen schemes, young saver deposits, and recurring and RFC deposits, as well as Rupee multiplier products. It also provides home, personal, gold, car, two-wheeler, commercial vehicle, professional, agricultural, and medical equipment loans, as well as loans against properties and securities; credit cards; micro-finance, working capital, and MSME and business loans, as well as loans to merchants and retailers, and loan on credit cards. In addition, the company offers transaction banking services, including letters of credit/guarantees, structured trade and export finance, and import finance solutions, as well as cash management and remittance services; safe deposit lockers; investment products, such as demat account, mutual fund, gold bond, national pension system, and equity trading; project finance, supply chain financing; investment advisory, strategic mergers and acquisitions, and other advisory services; and health, general, life, and card protection insurance. Further, it provides debit, prepaid, forex, and commercial cards; individual outward remittances, foreign currency bank notes and demand drafts, and travelers cheques; financial inclusion products; trade and foreign exchange accounts; real estate developer financing and bullion services; correspondent banking services; and forex and derivative desk, information and advisory, and remittances through forex channel services. The company was incorporated in 1994 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

IndusInd Bank Limited reported revenue of ₹251B in FY2026 versus ₹220B in FY2022, a compound +3.3%/yr. Reported net income was ₹8.9B in FY2026, compounding −34.4%/yr from FY2022.

Growth Quality 50/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹251B
Latest YoY
−6.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.3%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.8%
Revenue +3.3%/yr
FY22 ₹220B
FY23 ₹258B
FY24 ₹300B
FY25 ₹267B
FY26 ₹251B
Net income −34.4%/yr
FY22 ₹48.1B
FY23 ₹74.4B
FY24 ₹89.8B
FY25 ₹25.8B
FY26 ₹8.9B

INDUSINDBK screens 83% overvalued. Compare with PT Bank Central Asia Tbk →

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Cite: Fair Value Calculator (2026). "IndusInd Bank Limited Fair Value". https://www.fairvalue-calculator.com/stock/INDUSINDBK.BSE

Peer Group

Banks - Regional · 1090 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 46 · Bottom 25%
Fair Value upside −83% · Bottom 25%
Return on equity (TTM) 1% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 8% · Bottom 25%
Operating margin (TTM) 27% · Below median
Revenue growth 1% · Below median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 0.82× · Higher than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 59.0× · Pricier than 75% of peers
P/B 1.19× · Pricier than median
P/S (TTM) 4.52× · Pricier than 75% of peers
P/FCF 2.7× · Cheaper than median
PEG 0.72× · Cheaper than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,350 IDR 4,637 IDR -27%
KB Financial Group 105560 168,100 KRW 220,258 KRW +31%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 3,110 IDR 3,792 IDR +22%
PT Bank Mandiri (Persero) Tbk BMRI 4,150 IDR 6,067 IDR +46%
Banco Bradesco S.A BBD 5,120 ARS 8,400 ARS +64%
Shinhan Financial Group 055550 103,800 KRW 146,032 KRW +41%
Hana Financial Group 086790 127,900 KRW 210,506 KRW +65%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,500 VND 45,959 VND -23%
Woori Financial Group 316140 33,000 KRW 60,758 KRW +84%

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Frequently asked questions

Is IndusInd Bank Limited (INDUSINDBK) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ₹171.22 versus a price of ₹1,003, about −83% (overvalued).
What is the fair value of INDUSINDBK?
Our model-based fair value for IndusInd Bank Limited is ₹171.22 (as of Aug 21, 2026), built from audited fundamentals. The current price: ₹1,003.
What is the quality score of INDUSINDBK?
IndusInd Bank Limited has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of IndusInd Bank Limited (INDUSINDBK)?
IndusInd Bank Limited reported trailing-twelve-month revenue of about ₹173B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of INDUSINDBK?
The net profit margin of IndusInd Bank Limited is about 7.7%, meaning it keeps roughly 7.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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