Brokerage firm Jefferies has retained a positive outlook on HDFC Bank, keeping investor attention firmly on the HDFC Bank Share Price despite recent developments that triggered market concerns.
The bank recently came under scrutiny after the resignation of its part-time Chairman, Atanu Chakraborty. He stepped down citing concerns over certain internal matters that he said did not align with his personal values and ethics. This move raised governance-related worries, which led to sharp selling pressure on the HDFC Bank Share Price.
Following the news, the stock declined by 3.3%, falling Rs 26 to close at Rs 756.25. However, Jefferies believes that the current correction presents a strong opportunity, suggesting significant upside potential in the HDFC Bank Share Price going forward.
Jefferies’ View on HDFC Bank
According to Jefferies, the HDFC Bank Share Price has dropped nearly 24% year-to-date, underperforming its peers. This decline, however, has made the stock’s valuation more attractive.
At present, the bank is trading at around 1.6x price-to-book and 13x price-to-earnings, which is at a discount compared to rivals such as ICICI Bank. This valuation gap strengthens the investment case for the HDFC Bank Share Price.
Jefferies has also identified HDFC Bank as one of its top picks in the sector. The brokerage expects loan growth to register a compound annual growth rate (CAGR) of approximately 13% between FY26 and FY28. Net profit is projected to reach around Rs 922 billion by FY28.
Margins are expected to remain stable, with net interest margins (NIM) estimated at about 3.5%, while return on equity (ROE) is likely to stay near 14%. Asset quality continues to remain strong, with gross NPAs projected at 1.2% and net NPAs at 0.4%, supporting long-term stability in the HDFC Bank Share Price.
Growth Drivers and Risks
Jefferies also highlighted that synergies from the recent merger could drive future growth and enhance operational efficiency. Key triggers for the HDFC Bank Share Price include stronger deposit growth and greater clarity on leadership.
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However, the brokerage cautioned that certain risks remain, including challenges in merger integration, deposit mobilisation, and management transition.
Other Brokerages Remain Positive
Jefferies is not alone in its optimistic stance. Several other brokerages have also maintained bullish ratings on the HDFC Bank Share Price:
- Bernstein: “Outperform” rating with a target price of Rs 1,150
- Citi: “BUY” rating with a target price of Rs 1,200
- Nirmal Bang: “BUY” rating with a target price of Rs 1,210
- Emkay: “BUY” rating with a target price of Rs 1,225
Overall, despite short-term concerns, analysts remain confident about the bank’s long-term growth trajectory, keeping the HDFC Bank Share Price in strong focus for investors.