Macquarie has maintained an ‘Outperform’ rating on IndusInd Bank, projecting a target price of ₹1,210, even as the stock trades at a much lower level of ₹735.50. The brokerage has assessed the recent derivative-related discrepancies and termed their impact on the bank’s financials as limited.
According to Macquarie, the external audit report pegs the post-tax impact of derivative portfolio discrepancies at 2.27% of the bank’s net worth, a figure that is marginally lower than the internal estimates previously disclosed by the bank. The brokerage believes this reduction is incrementally positive in the near term, easing investor concerns around the issue.
Macquarie expects the overall financial impact of the discrepancies to remain confined within the earlier guided range, which reduces the likelihood of any significant negative surprises in upcoming quarters. It also suggests that investor focus can now gradually return to the bank’s core metrics such as growth, margins, and asset quality, especially with Q4 results approaching.
The reaffirmation of the rating reflects Macquarie’s view that the recent developments are not likely to derail the bank’s medium-term earnings outlook.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
