Following IndusInd Bank’s surprise Rs 2,328.9 crore loss in Q4 FY25 and revelations of accounting discrepancies, brokerages have issued a mixed bag of views, ranging from sharp downgrades to cautious optimism. Here’s a summary of what top brokerages are saying:
Buy
Jefferies – Buy, Target Price: Rs 920
Despite a Rs 22 billion Q4 loss, Jefferies sees value, noting the clean-up was significant and may pave the way for recovery post new CEO appointment. The brokerage acknowledges sharp estimate cuts but believes valuations now reasonably reflect the risks.
Hold / Neutral
CLSA – Hold, Target Price: Rs 725
The Q4 loss was driven by multiple known and unknown one-offs, including overstated MFI income and misclassified NPAs. CLSA awaits clarity on CEO succession and business stability before turning constructive.
Macquarie – Outperform, Target Price: Rs 1,210
While the rating suggests optimism, Macquarie’s tone is cautious. It sees value in current valuations (trading at 0.9x P/B), but flags lingering concerns over asset quality, governance, and clarity on strategic direction.
Reduce / Sell
UBS – Sell, Target Price: Rs 600
Citing weak results, strategic uncertainty, and low ROEs, UBS believes the stock is not cheap and could face further derating amid lack of direction and soft balance sheet growth.
HSBC – Reduce, Target Price: Rs 660
Downgrades the stock post Q4 shock. HSBC believes IndusInd has been pushed back to its pre-2009 phase and questions the clarity of its recovery path. EPS estimates cut by over 40 percent.
Nuvama – Reduce, Target Price: Rs 600
Points to deep-rooted issues in every major financial line item in FY25. Reconciliations remain unclear, visibility for FY26 is poor, and high liquidity needs will hurt margins further.
Summary
| Brokerage | Rating | Target Price | Stance |
|---|---|---|---|
| Jefferies | Buy | Rs 920 | Bullish |
| Macquarie | Outperform | Rs 1,210 | Cautiously Positive |
| CLSA | Hold | Rs 725 | Neutral |
| HSBC | Reduce | Rs 660 | Bearish |
| UBS | Sell | Rs 600 | Bearish |
| Nuvama | Reduce | Rs 600 | Bearish |
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
