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IndusInd Bank shares will now have reported weekly losses in eight out of the last 10 weeks.
Brokerage firm Goldman Sachs downgraded IndusInd Bank to “neutral” from its earlier rating of “buy”. The firm also cut its price target by 18% to ₹1,090 from ₹1,318 earlier.
Goldman Sachs has cut IndusInd Bank’s Earnings Per Share (EPS) estimates by 5%, 16% and 18% for financial year 2025, 2026 and 2027 on a variety of factors.
The brokerage said that IndusInd Bank’s revenue engines have slowed over the last two quarters and it expects further impact on the same due to rising delinquencies in the commercial retail portfolio, along with slower loan growth.
However, Goldman Sachs did say in its note that IndusInd Bank’s valuations have corrected quite sharply as investors have shifted focus to the price-to-book multiples from price-to-earnings, owing to limited earnings visibility post its third quarter results.
The stock is now trading at 1 times financial year 2026 price-to-book, which, according to Goldman Sachs is “fair” for Return on Assets (RoA) of 1.3%, loan growth of 14% and Return on Equity (RoE) of 11%.
Out of the 50 analysts that have coverage on IndusInd Bank, 36 of them have a “buy” rating, 12 say “hold”, while two of them have a “sell” rating.
Shares of IndusInd Bank are currently trading 2.7% lower on Friday at ₹954.4 and are close to their 52-week low of ₹926. The lender has corrected 44% from its recent peak of ₹1,694. The stock was the worst performer on the Nifty 50 index, with a fall of 40%.
