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IndusInd Bank Limited (INDUSINDBK) Fair Value & Analysis

Financial Services · IN · Market cap ₹781B (≈ $8.2B) · ISIN INE095A01012

IB IndusInd Bank Limited INDUSINDBK · NSE
Price₹1,003
Fair Value₹171.22
Upside-82.9%
Quality41/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

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Strengths

Moderate debt · generates free cash flow

Risks

!Trades 486% ABOVE our fair value of ₹171.22
!Mixed Growth (revenue 5y +8.9 %/yr)
!Thin margins · 7.7% net margin
!Trails peers (2/15)
Mixed Growth (revenue 5y +8.9 %/yr)
Thin margins · 7.7% net margin
Moderate debt · generates free cash flow
0.15% dividend yield
Trails peers (2/15)
Moderate moat 45/100
Evidence: High Range ₹128.41 – ₹214.02 Share as image

Fair value as of: Aug 28, 2026

From 6 valuation models · updated today

Share price +1.1% over the past month.

Below-average quality, and trading another 486% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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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 (41/100) 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 ₹636.02 Fair Value ₹171.22 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range ₹636.02 – ₹1,668 · fair‑value band ₹128.41 – ₹214.02 · the ₹1,003 price screens above the ₹171.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 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 41/100 (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).

Revenue grew 272.7% year over year. It earns a return on equity of 1.4%. The balance sheet holds a net cash position of ₹61.4B. The stock trades on a trailing P/E of 88.0. Fundamentals as of Aug 28, 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 near 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 -7% 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 ₹595.76 ₹569.20 ₹439.35 76
Gordon GGM ₹158.63 ₹346.32 ₹582.70 70
P/E Multiple ₹111.29 ₹148.39 ₹185.49 63
All 6 models by family
Dividend Discount
Gordon GGM ₹158.63 ₹346.32 ₹582.70 70
DDM Multi-Stage ₹158.63 ₹283.69 ₹360.92 61
Multiples
P/E Multiple ₹111.29 ₹148.39 ₹185.49 63
P/B Multiple ₹145.53 ₹194.05 ₹242.56 55
Asset-Based
NCAV (Graham) ₹421.88 ₹565.32 ₹843.75 50
Economic Profit
Residual Income ₹595.76 ₹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

P/E ratio 88.0
P/S ratio 1.46 P/E × margin
EPS (TTM) ₹11.40 price ÷ EPS = P/E 88.0
Dividend yield 0.2% payout 13.2%
Net margin 1.7% FY2026
Return on equity 1.4% TTM
More key figures
Profitability
Return on assets (EBIT) 1.4% avg 5y
Operating margin 17.7% TTM
Growth
Revenue growth (YoY) +273% 3y avg +6.5%
EPS growth (YoY) -91.2%
Balance sheet & cash flow
Free cash flow ₹11.0B FY2026
Net cash ₹61.4B FY2026

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 41 · Market factors (momentum, volatility) 72

Profitability 13
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 76
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

IndusInd Bank Limited provides various banking products and financial services to individuals, corporations, government entities, and public sector undertakings in India. It operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations.

Full company description

IndusInd Bank Limited provides various banking products and financial services to individuals, corporations, government entities, and public sector undertakings in India. It operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company offers savings, salary, RFC, and uniformed personnel accounts; current accounts comprising smart, everyday, premium, trade, startup, and specialized accounts; fixed, recurring, sweep in/out, senior citizen fixed, NRE and NRO fixed, FCNR, and term deposits; vehicle, used and new car, two wheeler, home, gold, agri, personal, doctor professional, medical equipment, term, quick business, SME, and MSME loans; loans against property and securities; loans on credit card; and microfinance, working capital, and trade and export finance. It also provides debit, credit, prepaid, commercial, forex, duo, corporate, and business cards; life, health, and general insurance; safe deposit lockers; payment and financial inclusion products; foreign exchange services, including inward and outward remittances, and online forex portals; digital banking; and online vehicle auction services. In addition, the company offers mutual funds; bill payment; money transfer; NRI services; merchant solutions comprising POS terminal, payment gateway, digital rupee, and QR; transaction banking services, including trade finance, cash management, and tax payment; supply chain finance solutions, including supplier/vendor finance, channel finance, and receivable finance/factoring solutions; investment banking services consisting of debt syndication, debt and private equity fund-raising advisory, and M&A advisory; foreign exchange advisory; derivatives, such as currency, interest rate, and exchange-traded derivatives; debt capital markets, bullions, research, and online platforms; and correspondent and inclusive banking. IndusInd Bank Limited was incorporated in 1994 and is headquartered 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 ₹535B in FY2026 versus ₹379B in FY2022, a compound +9.0%/yr. Reported net income was ₹8.9B in FY2026, compounding −34.4%/yr from FY2022.

Growth Quality 67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹535B
Latest YoY
−4.7%
Avg. revenue 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.
+6.5%
Avg. revenue 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.
+8.9%
Avg. revenue growth/yr (21Y) 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.
+19.0%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−28.6% (-28.7 + 0.2)
Revenue +9.0%/yr
FY22 ₹379B
FY23 ₹442B
FY24 ₹546B
FY25 ₹561B
FY26 ₹535B
Net income −34.4%/yr
FY22 ₹48.1B
FY23 ₹74.4B
FY24 ₹89.8B
FY25 ₹25.8B
FY26 ₹8.9B
Character of growth · EPS growth decomposed (2015-2026) +3.1 % p.a.
Revenue per share +11.3 pp

of which total revenue +15.2 pp · buybacks/dilution −3.8 pp

EBIT margin −7.4 pp
Tax rate +1.4 pp
Residual (interest, one-offs) −2.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

INDUSINDBK screens 83% overvalued. Compare with DBS Group →

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

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 44 · 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) 0.1% · Bottom 25%
Debt / equity 0.82× · Higher than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 88.0× · Pricier than 75% of peers
P/B 1.19× · Pricier than median
P/S (TTM) 4.52× · Pricier than 75% of peers
P/FCF 0.7× · Cheaper than median
EV/EBITDA 46.7× · Pricier than 75% of peers
PEG 0.72× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 34
FUTURE5 · sector 44
PAST5 · sector 41
HEALTH59 · sector 85
DIVIDEND3 · sector 51

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

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 28, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD -46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.74 €5.66 -16%
HDFC Bank Limited HDB $23.17 $24.12 +4%
BNP Paribas SA BNP €100.66 €144.64 +44%
UniCredit S.p.A UCG €83.42 €77.62 -7%
Mizuho Financial Group MFG $10.45 $9.83 -6%
ICICI Bank Limited ICICIBANK ₹1,443 ₹835.21 -42%
CaixaBank, S.A CABK €13.10 €8.85 -32%
Oversea-Chinese Banking Corporation O39 31.19 SGD 19.80 SGD -37%

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Frequently asked questions

Is IndusInd Bank Limited (INDUSINDBK) overvalued or undervalued?
As of Aug 28, 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 28, 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 41/100. 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 net profit margin of INDUSINDBK?
The net profit margin of IndusInd Bank Limited is about 5.2%, meaning it keeps roughly 5.2% of revenue as net income. Based on the latest reported figures.
Does IndusInd Bank Limited pay a dividend?
IndusInd Bank Limited currently shows a dividend yield of about 0.15% relative to its recent price (as of Aug 28, 2026).

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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