Striking When It's Hot

Romesh Sobti takes money off the table as Indusind hovers at its all-time high

It’s the second-most expensive bank stock in the country after Kotak Mahindra and it is so for a reason. In 2008, when Romesh Sobti took over at the helm of IndusInd Bank, it was lower in the pecking order. A weak balance sheet and poor operations meant the bank was never considered a serious contender, but all that changed in the subsequent eight years as Sobti steered the bank through a comprehensive turnaround. During his tenure, the stock price has gone up nearly 14-fold from Rs.80 a share to about Rs.1,200. Not surprising the bank is now quoting at 32x one-year forward earnings and 4.10x book value.