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News Topical, Digital Desk : IndusInd Bank shares were the top Nifty gainers on Monday. Global brokerage firm Morgan Stanley upgraded IndusInd Bank's stock, citing its low valuation. The bank's stock rose 2.6 percent intraday to Rs 730.95 and was trading 1.8 percent higher at Rs 725.85 at 12:55 pm. Morgan Stanley upgraded the stock from underweight to equal-weight and raised the price target from Rs 750 to Rs 785. This target implies a potential upside of about 10 percent from the September 26 price. The brokerage firm noted that the stock has fallen 50% in the past year, making its valuation affordable. The brokerage firm stated that the stock is currently priced at 0.8 times its 2026-27 (April-March) book value, which is reasonable given its strong common equity tier-1 and strong liquidity coverage ratio.
Clarity regarding management: The appointment of a new CEO was also considered a positive factor. It's worth noting that the bank suffered a $230 million loss in fiscal 2025 due to internal derivatives trade errors, following which the CEO and deputy CEO resigned in April. Now, with a new management team, Morgan Stanley expects the bank to emerge with a clean balance sheet and a strong coverage ratio by the end of fiscal 2026. So far this year, IndusInd Bank shares have fallen 26%, while the Bank Nifty has gained 7% during the same period. The bank recently appointed Viral Damania as its new Chief Financial Officer (CFO), effective September 22nd. Damania's appointment comes after veteran banker Rajiv Anand took over as CEO last month for a three-year term.
Share Performance: The bank's shares were trading at ₹729.40 on Monday, up 2.37 percent. The company's stock has declined 49.63 percent in the past year.
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