Jefferies has maintained its Buy rating on IndusInd Bank while cutting the target price from Rs 1,750 to Rs 1,470, reflecting a 16% reduction. The current market price (CMP) of IndusInd Bank stands at Rs 1,279. The downgrade in the target is driven by weaker asset quality and contingent provisions, which have weighed down profits.
Key factors in Q2 performance
IndusInd Bank’s Q2 results were impacted by softer lending activity, which dragged down the topline. Additionally, the bank’s asset quality deterioration and contingent provisions further affected profitability.
Earnings outlook
Jefferies expects pressure on earnings to persist in the second half of FY25, with some moderation in FY26-27. This has led to a significant cut in earnings projections by 13-25% over the next few years. Despite these challenges, Jefferies continues to hold a positive long-term outlook on the stock, as reflected by its Buy rating.
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