Hinduja Group stocks tumble today as downgrades hit IndusInd Bank

Hinduja Group stocks: Share price of Ashok Leyland, and Gulf Oil Lubricant fell as low as 3.8 per cent each on Tuesday

Shares of most Hinduja Group listed companies tumbled in trade on Tuesday as shares of its lending vertical -- IndusInd Bank -- cracked after reporting a likely 2.35-per cent decline in its net worth due to discrepancies in its derivative accounts.

 

IndusInd Bank shares tanked 23 per cent to an intraday low of Rs 693.5 per share, hitting their lowest level since November 2020.

 

Shares of flagship company, Ashok Leyland, meanwhile fell as low as 3.77 per cent on Tuesday. The shares of the commercial vehicles maker have fallen over 8 per cent this year, following five years of consecutive gains.

 

Shares of GOCL Corp. extended their fall to the third day and were down 1.56 per cent as of 11:15 AM. At the same time, Hinduja Global Solutions shares, and NDL Ventures shares were down by 2.3 per cent and 2.88 per cent, respectively, compared to a 0.11 per cent decline in the benchmark Nifty 50. Meanwhile, the scrip of Gulf Oil Lubricants India Ltd. recovered after falling as much as 3.8 per cent in the intraday trade.

 

IndusInd Bank share price crash

The stock of IndusInd Bank came under heavy selling as a slew of brokerages downgraded the stock after a massive discrepancy in the private bank’s derivative portfolio. Analysts at Motilal Oswal Financial Services, Kotak Institutional Equities, Nuvama Institutional Equities, Emkay Global, and DAM Capital downgraded the stock along with target price cuts, according to Bloomberg.

 

The Mumbai-based lender said the net worth impact emerged from internal derivative trades, which were not in compliance with rules enforced by the Reserve Bank of India from April 2024, according to an exchange filing on Monday. The lender has appointed an external agency to independently review and validate the internal findings.

 

The discrepancies are not linked to client accounts, deputy Chief Executive Officer Arun Khurana said, without disclosing details on the nature of the inconsistencies. "Effective April 1, we can confirm that there will be no internal trades in our book; we have not entered into any internal trades," Khurana said in an analysts' conference call on Monday.

 

A negative derivatives disclosure has the potential to unnerve investors more than a back-dated NPL disclosure, according to analysts at Nuvama Institutional Equities, as it downgraded the stock to 'reduce' and slashed the target price to Rs 750 per share. The brokerage downgraded the stock, citing low visibility on succession and earnings.

 

IndusInd's counter has fallen by 6 per cent so far in 2025, following nearly a 40 per cent plunge in the year before. Out of the 49 analysts tracking the company, 25 have a 'buy', 17 have a 'hold', and seven have a 'sell' call, according to Bloomberg data. Analysts tracked by Bloomberg have a consensus 12-month target price of Rs 1088.5, an upside of 54 per cent.