IndusInd, KMB shares plunge 5% each; Axis Bank up 4%; target prices post Q3 results
Nirmal Bang said IndusInd Bank will see an overhang in the near-to-medium term due to de-growth in loan book, and higher credit costs in the unsecured loan segment.
- Jan 27, 2026,
- Updated Jan 27, 2026 9:55 AM IST
Private lenders IndusInd Bank Ltd and Kotak Mahindra Bank Ltd tanked 5 per cent each, while Axis Bank Ltd climbed 4 per cent following their December quarter results. By 9.40 am, Axis Bank shares had climbed 3.88 per cent to hit a high of Rs 1309 apiece on BSE. IndusInd Bank Ltd tumbled 4.86 per cent to Rs 849.65. Kotak Mahindra Bank was worst hit, falling 5.12 per cent to Rs 400.55.
Analysts said Kotak's profit after tax marginally missed the consensus estimate. NIM and slippage missed estimates, but credit cost was a beat. Slippage fell 1.5 per cent sequentially against its estimate of an 8 per cent decline, Nuvama said.
For now, Nuvama retained its ‘Hold’ rating on the stock with a target price of Rs 416. It believes KMB can get re-rated if slippage declines and growth in unsecured accelerates.
MOFSL said Axis Bank's reported net profit of was an 11 per cent beat, aided by lower provisions and controlled opex. NII growth was in-line, but provisions came in 13 per cent lower than MOFSL estimates.
MOFSL said with credit costs trending down, there is further scope for moderation, supported by easing stress in the unsecured portfolio and improved growth traction. "Business growth, which had been subdued earlier, has now picked up, aided by healthy deposit growth, leading to a decline in the CD ratio. The bank has reiterated its medium-term loan growth guidance of 300 bps above industry levels," it said.
This brokerage retained its 'Neutral' call on Axis Bank and suggested a target price of Rs 1,400.
On IndusInd Bank, Nirmal Bang said the lender's Q3 performance was better than its expectations at NII level by 7.5 per cent and lower than its expectations by 13.2 per cent on PPOP and by 85.5 per cent at PAT level.
It estimated an earnings CAGR of 23.3 per cent for IndusInd Bank over FY25-FY28E mainly due to improvement in cost ratios and credit costs. This, it said, will result in RoA/RoE of 0.9 per cent/6.9 per cent in FY28E.
"In our view, IIB will see an overhang in the near-to-medium term due to: (1) De-growth in loan book, and (2) Higher credit costs in the unsecured loan segment. We maintain a ‘Hold’ rating on IIB with a target price of Rs 888 (as against Rs 900 earlier) valued at 1 time December 2027E ABV," it said.
Private lenders IndusInd Bank Ltd and Kotak Mahindra Bank Ltd tanked 5 per cent each, while Axis Bank Ltd climbed 4 per cent following their December quarter results. By 9.40 am, Axis Bank shares had climbed 3.88 per cent to hit a high of Rs 1309 apiece on BSE. IndusInd Bank Ltd tumbled 4.86 per cent to Rs 849.65. Kotak Mahindra Bank was worst hit, falling 5.12 per cent to Rs 400.55.
Analysts said Kotak's profit after tax marginally missed the consensus estimate. NIM and slippage missed estimates, but credit cost was a beat. Slippage fell 1.5 per cent sequentially against its estimate of an 8 per cent decline, Nuvama said.
For now, Nuvama retained its ‘Hold’ rating on the stock with a target price of Rs 416. It believes KMB can get re-rated if slippage declines and growth in unsecured accelerates.
MOFSL said Axis Bank's reported net profit of was an 11 per cent beat, aided by lower provisions and controlled opex. NII growth was in-line, but provisions came in 13 per cent lower than MOFSL estimates.
MOFSL said with credit costs trending down, there is further scope for moderation, supported by easing stress in the unsecured portfolio and improved growth traction. "Business growth, which had been subdued earlier, has now picked up, aided by healthy deposit growth, leading to a decline in the CD ratio. The bank has reiterated its medium-term loan growth guidance of 300 bps above industry levels," it said.
This brokerage retained its 'Neutral' call on Axis Bank and suggested a target price of Rs 1,400.
On IndusInd Bank, Nirmal Bang said the lender's Q3 performance was better than its expectations at NII level by 7.5 per cent and lower than its expectations by 13.2 per cent on PPOP and by 85.5 per cent at PAT level.
It estimated an earnings CAGR of 23.3 per cent for IndusInd Bank over FY25-FY28E mainly due to improvement in cost ratios and credit costs. This, it said, will result in RoA/RoE of 0.9 per cent/6.9 per cent in FY28E.
"In our view, IIB will see an overhang in the near-to-medium term due to: (1) De-growth in loan book, and (2) Higher credit costs in the unsecured loan segment. We maintain a ‘Hold’ rating on IIB with a target price of Rs 888 (as against Rs 900 earlier) valued at 1 time December 2027E ABV," it said.