IndusInd Bank’s stock price is in focus after Nuvama maintained a ‘hold’ rating, with a target price of ₹1,115, implying a 19.25% upside from the current market price (CMP) of ₹935.00.
Nuvama sees RBI’s approval of only a one-year CEO extension as a negative development, noting that the bank will likely use this period to transition to a new CEO. Given RBI’s preference for external leadership in recent appointments, the odds of an external CEO replacing Sumant Kathpalia are high. If this happens, the brokerage warns that near-term earnings visibility—already impacted by a weak MFI cycle—will worsen further.
Additionally, the recent resignation of the CFO adds to the uncertainty in top management, and Nuvama expects the stock to remain under pressure despite the recent correction. Q4FY25 is also expected to be soft, adding to investor concerns.
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.
