Goldman Sachs downgrades IndusInd Bank stock to Sell on growth concerns

Published 02/07/2025, 12:50
Goldman Sachs downgrades IndusInd Bank stock to Sell on growth concerns

Investing.com - Goldman Sachs downgraded IndusInd Bank (NSE:INBK) Ltd (NSE:IIB) from Neutral to Sell on Wednesday, while raising its price target to INR722.00 from INR634.00.

The investment bank cited expectations of a "weaker growth profile and returns" for the Indian lender, even after its trajectory normalizes in the second half of fiscal year 2026 and fiscal year 2027.

Goldman Sachs pointed to IndusInd Bank’s loss of market share in key loan portfolios and deposits, alongside a slowdown in revenue engines and challenges in operational controls as primary concerns.

The firm cut its earnings per share estimates for IndusInd Bank by 25% for fiscal year 2026 and 17% for fiscal year 2027, reflecting "likely persistent margin pressure amid a weaker yield trajectory and elevated funding costs."

Goldman’s revised 12-month target price of INR722 per share implies a 17% downside potential, compared to an average 7% downside across its India financials coverage, with its estimates now 26% and 10% below consensus for the respective fiscal years.

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