1 week ago
Goldman Sachs Names Six Indian Banks With 18%-37% Upside
Goldman Sachs studied 14 Indian banks and selected six it thinks could perform well.
It gave all six a Buy rating.
ICICI Bank was its favourite, with a possible 37% increase to the stated target price.
Kotak Mahindra Bank was next, with possible upside of 31%.
HDFC Bank, Axis Bank and Federal Bank each had projected upside of 19%.
AU Small Finance Bank had projected upside of 18%.
Goldman Sachs expects better loan growth, steadier margins and improved efficiency to help banks earn more.
These are the brokerage’s views, not a guarantee or personal investment advice.
Goldman Sachs rates six Indian banks Buy, with projected upside ranging from 18% to 37%.
ICICI Bank is the brokerage’s preferred pick, with a Rs 1,935 target price and 37% potential upside.
Kotak Mahindra Bank has the second-highest projected upside at 31%, with a Rs 509 target price.
HDFC Bank, Axis Bank and Federal Bank each have projected upside of 19%, while AU Small Finance Bank has 18%.
Goldman Sachs expects loan growth, stabilising margins and operating leverage to support a recovery in bank profitability.
- Who
- Goldman Sachs and the six Indian banks it rates Buy: ICICI Bank, Kotak Mahindra Bank, HDFC Bank, Axis Bank, Federal Bank and AU Small Finance Bank.
- What
- Goldman Sachs published Buy ratings, target prices and upside estimates for six banks.
- Where
- India.
- When
- The article gives fiscal-year forecasts covering FY26-FY29E for several banks, but does not provide a publication date.
- Why
- Goldman Sachs expects improving loan growth, stabilising margins, stronger operating leverage and bank-specific improvements to support profitability and potential stock re-rating.
Key facts
- Brokerage
- Goldman Sachs
- Coverage universe
- 14 banks
- Top pick
- ICICI Bank
- Highest projected upside
- ICICI Bank: 37%, with a Rs 1,935 target price
- Second-highest projected upside
- Kotak Mahindra Bank: 31%, with a Rs 509 target price
- Lowest projected upside among the six
- AU Small Finance Bank: 18%, with a Rs 1,270 target price
- Investment thesis
- Profitability recovery driven by loan growth, stable margins and operating leverage
Quotes
Goldman Sachs
Brokerage providing ratings, targets and forecasts on Indian banks
“Profitability is the key driver of stock returns in the current cycle. Our stock-picking framework suggests the best risk-reward opportunities lie in ICICI Bank and Kotak Bank”
financialexpress.com
“We believe that Kotak Bank has the potential for material re-rating amongst our coverage banks”
financialexpress.com
Sources
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