UBS has downgraded IndusInd Bank to a ‘Sell’ rating, slashing its target price to ₹600 from ₹770, implying a downside of around 15% from the current market price of ₹708.60. The brokerage flagged multiple overhangs that could weigh on investor sentiment and valuations going forward.
According to UBS, key concerns include deposit traction, ongoing uncertainty around the CEO transition, and issues raised in the recent auditor report. As a result, UBS has cut its FY26 loan growth estimate by 200 basis points to 10% and reduced net interest margin (NIM) projections by 20–25 basis points.
Further, credit costs are expected to rise to around 1.7% in FY26. Consequently, earnings per share (EPS) estimates for FY26 and FY27 have been lowered by 14–15%. UBS believes these headwinds may drive further de-rating for the stock in the near to medium term.
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