Morgan Stanley has upgraded IndusInd Bank to equal-weight from underweight, with a target price of ₹785, highlighting improved clarity on leadership following the appointment of a new CEO.
The brokerage said the stock is fairly valued at 0.8 times its forecast FY27 book value. Its return on assets (RoA) outlook remains steady at 0.85% for FY27 and 1% for FY28, compared with 0.3% expected in FY26.
While the rating has been lifted, Morgan Stanley noted that upside remains capped as earnings and growth expectations are largely priced in, making the current valuation fair rather than compelling.
Disclaimer: The views and recommendations made in this article are those of Morgan Stanley. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
