IndusInd Bank shares fall as Goldman Sachs cuts price target 

Shares of IndusInd Bank slipped over 3% on Friday after the global brokerage Goldman Sachs downgraded the stock to ‘neutral’ from a ‘buy’ rating. It cut the target price by 17% to Rs 1,090 per share. The brokerage mentioned concerns over IndusInd Bank's future performance while reducing the lender’s earnings per share estimates by 5% for FY25, 16% for FY26, and 18% for FY27. Return on assets (ROA) is expected to remain subdued at 1.3% over fiscal years 2025 to 2027. 

The downgrade reflects Goldman Sachs' cautious outlook amid slowing revenue growth and rising delinquencies in the micro, small, and medium enterprise (MSME) and commercial vehicle (CV) loan segments. 

IndusInd Bank shares fell 3.23% to Rs 949.20 against the previous close of Rs 980.90 on BSE. Market cap of the bank slipped to Rs 74,800 crore. 

A total of 0.82 lakh shares of the firm changed hands amounting to a turnover of Rs 6.23 crore on BSE.

In five years, the stock has fallen 36.20% and lost 42% in a year. IndusInd Bank shares have a one-year beta of 1.3, indicating very high volatility during the period. In terms of technicals, the relative strength index (RSI) of IndusInd Bank stands at 37.3, signaling the stock is trading neither in the overbought nor in the oversold territory.

The lender reported a 40 percent fall in net profit for the September 2024 quarter. Profit slipped to Rs 1,331 crore in Q2, missing Street estimates. Profit was hit by a surge in provisions for bad loans in the last quarter. In the September 2023 quarter, the lender reported a profit of Rs 2181 crore. 

Provisions and contingencies climbed 87% to Rs 1,820 crore in Q2 against Rs 974 crore reported in the same quarter previous year.