IndusInd Bank top Nifty gainer after CLSA rates 'Outperform' with 28% upside

IndusInd Bank trades at 20-40 percent discount compared to its peers, says CLSA analysts as they set target price at Rs 1,800

Moneycontrol News

August 28, 2024 / 10:54 IST

So far this year, the stock of this private sector lender has underperformed benchmark Nifty 50

26 Aug, 2025 12:21

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Shares of IndusInd Bank are higher by nearly 2 percent to become the top Nifty 50 gainer on August 28 after CLSA reiterated an 'Outperform' and noted a potential upside of 28 percent from current levels, setting a target of Rs 1,800.

So far this year, the stock of IndusInd has underperformed benchmark Nifty 50, down 12 percent as compared to the latter's 15 percent rise. The last time the lender touched 52-week high of Rs 1,694 apiece was on January 15, 2024, while its 52-week low of Rs 1,328 was on August 7, 2024.

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Analysts at CLSA believe IndusInd Bank is well-placed to thrive in a climate of interest rate reductions, and the shares are trading at 20-40 percent discount compared to its peers. Moreover, its asset quality picture looked favourable with no significant changes expected.

Nomura too has called the Reserve Bank of India's nod for setting up an asset management subsidiary a positive step for the lender. As the bank enters para banking - services undertaken by banks in addition to routine activities - it potentially paves the way for smaller banks to follow suit, said Nomura. The brokerage has maintained a 'Neutral' on IndusInd Bank and kept the target unchanged at Rs 1,580 per share, which reflects a potential upside of 12 percent from current levels. The RBI’s approval marks a rare instance of a bank being permitted to set up a new AMC business (excluding legacy businesses), said Nomura.