IndusInd Bank’s stock price remains under focus as Goldman Sachs (GS) maintains a ‘neutral’ rating, with a target price of ₹964, implying a 3.10% upside from the current market price (CMP) of ₹935.00.
GS notes that RBI’s decision to extend the MD & CEO’s tenure by only one year delays clarity on the management transition, which could weigh on investor sentiment. The brokerage believes that investors will now focus more on the bank’s operational performance, which faces multiple challenges, including:
- Slowdown in revenue engines, leading to market share loss in key segments like commercial vehicles (CVs).
- Rising delinquencies in the commercial retail portfolio, including MFI, CVs, and tractors.
- Weak operating profitability, driven by margin moderation.
With ongoing uncertainties in management transition and operational hurdles, GS sees limited near-term upside for the stock.
Disclaimer: The views and investment recommendations in this article are sourced from brokerage reports. Business Upturn does not provide investment advice. Readers should consult financial experts before making any investment decisions.
