HSBC has maintained its Buy rating on IndusInd Bank, reducing the target price from Rs 1,770 to Rs 1,510, representing a 14.7% cut. The revision comes after the bank’s performance showed weakness, particularly in microfinance loans. Adverse movements in loan growth, net interest margin (NIM), and credit costs contributed to the disappointment. The bank’s current market price (CMP) is Rs 1,279.
Earnings revision
HSBC has cut the bank’s earnings per share (EPS) estimates by 8.7% to 21.4% for FY25-27, reflecting the lower loan growth and pressure on earnings metrics.
Valuation outlook
At 1.3x FY26 book value per share (BVPS), HSBC noted that the company’s risk-to-reward ratio remains favourable.
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