Stockgram

At least one-third of the 45 analysts that have coverage on IndusInd Bank now have a "sell" recommendation on the stock. This, after the Mumbai-based private lender reported its first net loss in nearly two decades for the March quarter. The stock fell as much as 5% in early trading on Thursday.





Brokerage firm UBS has a "sell" rating on the stock with a price target of ₹600. While it said that the stock is not inexpensive at current levels, but lack of strategic direction, lower balance sheet growth, uncertainty on margins is likely to result in de-rating for the stock.





HSBC has downgraded IndusInd Bank to "reduce" and has cut its price target to ₹660. It said that IndusInd Bank has been pushed back to the pre-2009 era with no clarity yet on the rebuilding process.





As a result, the brokerage has cut IndusInd Bank's Earnings per Share (EPS) estimates by 41% to 43% for financial year 2026 and 2027, as the management has made one-off adjustments to correct accounting discrepancies.





CLSA has maintained its "hold" recommendation on IndusInd Bank with a reduced price target to ₹725.





On the earnings call, the management mentioned that the RBI has asked for the MD & CEO candidate names by June 30.





As a result, the brokerage has cut financial year 2026 and 2027 net profit estimates by 42% and 28% respectively.





Nuvama has also maintained its "reduce" recommendation on IndusInd Bank and cut its price target to ₹600.





The brokerage said that the visibility for FY26 is low because it is unclear as to what will happen to retail deposits after disclosures made on repeated discrepancies.





The need for the bank to maintain high liquidity will impact its Net Interest Margins (NIMs).





On the flip side, Jefferies has maintained its "buy" rating on IndusInd Bank but cut its price target to ₹920.





The brokerage said that growth and profitability for IndusInd may stay low for FY26 and recover from there.





Although estimate cuts are sharp, valuations at the current juncture "reasonably" price in the risk.





A brokerage that expects a potential upside of up to 60% is Macquarie, who has a "outperform" rating on the stock, with a price target of ₹1,210.





It has cited cheap valuations as a factor, although asset quality remains a concern.





Clarity around succession, peak credit costs, sustainable NIMs, and governance are key monitorables, the brokerage said.





Out of the 45 analysts that have coverage on IndusInd Bank, 14 of them have a "buy" rating, 16 say "hold", while 15 others have a "sell" recommendation on the stock.





Shares of IndusInd Bank ended 2% lower on Wednesday ahead of the results announcement. The stock has declined 3% in the last one month.