Morgan Stanley has maintained an ‘Equal-weight’ rating on IndusInd Bank, with a target price of ₹755, as the stock currently trades at ₹735.50. The brokerage noted that the external audit report has confirmed the loss from derivative discrepancies to be broadly in line with the management’s earlier estimate of 2.35% of the bank’s Q3FY25 net worth.
While the immediate financial impact appears contained, Morgan Stanley highlighted that it will closely monitor the findings from the upcoming comprehensive audit report, which could offer deeper insights into the nature and origin of the discrepancies.
Additionally, the brokerage is looking to the bank’s Q4FY25 results for clarity on key metrics including margins, growth outlook, and asset quality trends, which will help assess any further risk overhang.
The reaffirmation of the rating reflects a wait-and-watch approach, with the current valuation seen as fair until more concrete visibility emerges from upcoming disclosures.
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.
