IndusInd Bank shares dropped nearly 3% to hit an intraday low of Rs 949.2 in early trade on January 10 after Goldman Sachs downgraded the stock to 'neutral' from its earlier 'buy' call. The international brokerage reduced its target price for the shares of the private lender to Rs 1,090 from Rs 1,318. This, however, suggests a potential upside of 11% from the stock's previous closing level of Rs 980.9, as seen on January 9.
Goldman cited rising defaults in IndusInd Bank's commercial retail portfolio, slower revenue growth and growing earnings pressure as reasons for the revised outlook on the stock.
Goldman Sachs also cut earnings per share (EPS) for the stock by 5% in the current FY25, 16% in FY26 and 18% in FY27. The return on assets (ROA) has also been predicted to be lower at 1.3% in FY 25-27.
Notably, IndusInd Bank has been the worst performer on Nifty 50 in 2024, falling as much as 40%. The shares were also the top loser on Nifty Bank index on January 10, which itself was down over 500 points or 1%.
IndusInd Bank shares later recovered some losses in the early trading hours of January 10, and were trading at around Rs 958.20 apiece (2.31% lower). The stock is trading close to its 52-week-low record of Rs 927. The shares are around 45% down from their 52-week-high record of Rs 1,694.35. The stock currently has a market capitalisation of around Rs 74,805 crore, as per data on BSE.
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