look news india
Last Friday, a huge fall was seen in the shares of private sector IndusInd Bank. The stock fell 5 per cent to an intraday low of Rs 933.45, close to its 52-week low of Rs 927.05. The stock ultimately closed at Rs 937.60, marking a decline of 4.41% from the day before. In view of this situation, the sentiment of brokerage has also become negative.
brokerage opinion
New York-based brokerage Goldman Sachs has downgraded the shares of IndusInd Bank to ‘neutral’ rating. It has reduced the target price of the stock to Rs 1,090, which implies an upside of about 12 per cent from the current price. Earlier, brokerage Jefferies had noted near-term challenges for the bank. In particular, the auto finance sector is facing weak demand and adverse conditions for commercial vehicles.
Jefferies has revised its earnings estimates for FY26-27 by 12-13 per cent. Return on equity (ROE) is expected to remain stable around 13 percent in FY2025. It cut the target price of the stock to Rs 1,200 from Rs 1,470 while maintaining ‘buy’ rating. In December last year, Zurich, Switzerland-based brokerage UBS had also reduced the target price of IndusInd Bank to Rs 1,150 per share, though it maintained ‘neutral’ rating.
waiting for management
IndusInd Bank is awaiting the approval of the Reserve Bank of India (RBI) for the reappointment of its CEO, the decision of which is expected before March 23, 2025. The tenure of the CEO expires in March 2025.
quarterly results status
IndusInd Bank reported a 39.5 per cent year-on-year decline in its net profit at Rs 1,331.29 crore in the September quarter. The decline was mainly due to increase in provisions, which almost doubled to Rs 1,820 crore compared to Rs 974 crore in the same period last year. The bank’s net interest income (NII) grew 5 per cent year-on-year to Rs 5,347 crore.