Multibagger - Indusind Bank, 81% Return in 20 months


"We will consistently add value to all our stakeholders and emerge as the ‘best-in-class’ in the chosen parameters amongst the comity of banks, by doubling our profits, clients and branches within the next three years." This is the mission statement of Indusind Bank and I'm glad to write that they really mean "doubling our profits, clients and branches. If we take one of the primary objective of business, i.e wealth maximization, then it has double its investor's wealth in a short span of time.

Indusind bank annual report
(Annual Report FY 2017-18)

It's the extract of its annual report for FY 2017-18. We can clearly see the growth which company is achieving. Not only this, it is also showing promise for future. There is no doubt that there is still a long road ahead for this bank. But in this segment we are here to calculate its return which it has rewarded its investors.

Talking about its price, it was traded for 1100 in January 2017. From there it has never faced downtrend in its daily charts or weekly charts. That is obviously a good indicator for any business organization. Just have a look in its technical charts.

indusind bank daily chart

It has already touched ₹2000 that is 81% return in 20months which is a decent profit. It has truly doubled the wealth of investors. It is trading at a P/E of 31.2 which is lower than the industry P/E which is 35.62. That makes it even more attractive. I strongly believe this is just the beginning. Index are trading at record high, so there may come small corrections. But after that its price will again fly high. With strong fundamentals and technical I think this could be a multibagger of next decade.

That's all for this weekend.

Thank you

Happy Investing

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