Morgan Stanley has maintained an ‘equal weight’ rating on IndusInd Bank, setting a target price of ₹900 per share. The firm highlighted concerns over the bank’s recent disclosure of a 2.4% potential loss of net worth, stemming from a process flaw in inter-desk swap accounting of FX hedges, which led to an understatement of costs.
Analysts noted that visibility on the stock continues to decline, citing recent management changes, including the resignation of the CFO and a shorter-than-expected tenure extension for the CEO. The latest revelation regarding a major loss in the derivatives portfolio adds to the concerns, raising downside risks to earnings estimates.
At the time of assessment, IndusInd Bank’s share price was trading at ₹901.95.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Please consult a financial expert before making any investment decisions.
