IndusInd Bank shares drop nearly 3% today as Goldman Sachs downgrades stock to ‘Sell' with Rs 722 target
Shares of IndusInd Bank slipped 2.87% or Rs 25.20 on Tuesday, trading at Rs 853.90 on the NSE by 9:25 AM, compared to its previous close of Rs 879.10.
Goldman Sachs has downgraded its rating on IndusInd Bank to 'Sell' from its earlier stance, setting a target price of Rs 722 per share. The downgrade reflects concerns over the bank's structural challenges and future profitability.
Goldman Sachs stated that IndusInd Bank now appears to have a structurally weaker franchise, with Return on Assets (ROAs) expected to reset lower going forward. The brokerage has cut its earnings estimates for the bank, lowering its FY26 and FY27 EPS projections by 25% and 17%, respectively.
The global brokerage also highlighted that even after normalization of business growth and credit cost trajectory in the second half of FY26 and FY27, the bank is likely to continue reporting a weaker growth profile and subdued return ratios.
Goldman Sachs further expects IndusInd Bank's valuation to remain below its book value.
As of the latest update, IndusInd Bank's stock traded between Rs 854 and Rs 875.50 during Tuesday's session, with a market capitalization of Rs 665.42 billion.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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