The brokerage has also revised its price target higher to ₹722 from ₹634 earlier. The revised price target implies a potential downside of 18% from Tuesday’s closing levels. This target is also 60% lower than the peak target that Goldman Sachs had, that of ₹1,828 per share back in January 2024.
IndusInd Bank is now a structurally weaker franchise now, according to Goldman Sachs, who also projected the lender’s Return of Assets (RoA) to trend lower going forward.
“We believe that the bank is likely to have a weaker growth and returns profile even after normalisation of its trajectory in the second half of the current financial year or in financial year 2027,” the Goldman note said.As a result, the brokerage has cut its Earnings Per Share (EPS) estimates for IndusInd Bank by 25% and 17% for financial year 2026 and 2027 to reflect the likely persistent margin pressure amidst a weaker yield trajectory and elevated funding costs.
IndusInd Bank’s valuations are also likely to remain at below-book levels as the visibility of turnaround at the lender remains poor, Goldman Sachs said.
CNBC-TV18 had reported on June 27, citing sources with knowledge of the matter, that IndusInd Bank is inching closer to finalising a new Chief Executive Officer as it works to recover from a string of accounting lapses and senior management exits that have shaken investor confidence. You can read more on that here.
Out of the 46 analysts that have coverage on IndusInd Bank, 23 of them have a “sell” rating on the lender, 13 have a “hold”, while 10 have a “buy” recommendation.
Shares of IndusInd Bank are currently trading 3% lower at ₹852.8. The stock is up 5% so far in the last one month.
