IndusInd Bank shares saw a significant drop of over 3% in morning trade following a downgrade by Goldman Sachs, which revised its rating from “Buy” to “Neutral” with revised target price of ₹1,090.
The shares opened at ₹971.75, with a high of ₹975.00 and a low of ₹949.10. Over the past 52 weeks, the stock reached a high of ₹1,694.50 and a low of ₹926.45.
As per Goldman Sachs, key concerns include weakened growth prospects, with earnings projections slashed by 5%, 16%, and 18% for FY25, FY26, and FY27, respectively. Additionally, Return on Assets (ROAs) is expected to remain subdued at 1.3% over the next three years.
Goldman Sachs highlights slowing revenue growth and increasing delinquencies, particularly in MSME and commercial vehicle loans, which pose risks to the bank’s performance. Loan growth is expected to face headwinds, further impacting profitability. Despite these challenges, the risk-reward scenario for IndusInd Bank is considered balanced, with limited upside potential at its current valuation.
As of 9:41 AM, IndusInd Bank shares were trading 2.84% lower at Rs 953.00.
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