IndusInd Bank shares emerged as top Nifty gainer on September 29 after global brokerage Morgan Stanley upgraded the stock citing inexpensive valuations.
The stock rose up to 2.6% to Rs 730.95 on September 29 before paring gains to trade at Rs 725.85, up 1.8%, at 12:55 pm.
Morgan Stanley upgraded the stock to "equal-weight" from "underweight" and hiked price target to Rs 785 from Rs 750.
The new price target implies an upside of 10% from the stock's last price on September 26.
The stock is down 50% in the last year, making valuations inexpensive, said Morgan Stanley. The brokerage said the stock currently trades at 0.8 times the 2026-27 (Apr-Mar) book value which is fair on account of good common equity tier – 1 and strong liquidity coverage ratio.
Clarity over management after the new CEO appointment is also a positive, according to the brokerage
The private lender took a $230-million hit in fiscal year 2025 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO and deputy CEO in April.
"With a new management team in place, we expect IndusInd Bank to exit fiscal year 2026 with a clean balance sheet and strong coverage ratios," said Morgan Stanley.
The lender's shares have been down 26% in 2025 so far, compared with a 7% rise in Bank Nifty during the same period, exchange data shows.
Recently, IndusInd Bank named Viral Damania as its chief financial officer on Monday, marking another key leadership appointment in nearly a month after a $230 million hit in accounts triggered a management shakeup earlier this year.
Damania's appointment, effective September 22, comes after the bank late last month said veteran banker Rajiv Anand had taken charge as its CEO for a three-year period.
With 27 years of banking experience, Damania was most recently the finance chief of Bank of America's India branch. He had also worked with global financial institutions, including Citibank North America and BofA Securities India.
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