Stories
HDFC Bank Holds Steady as Brokerages Await Q2 Results for Price Target Revisions
- •Brokerages have kept their price targets and ratings unchanged following the appointment of Anup Bagchi as the new CEO.
- •Analyst consensus remains strongly positive with 47 buy calls, two hold calls, and zero sell ratings.
- •Experts believe Bagchi's extensive banking experience will help restore investor confidence and drive cross-selling.
- •Market participants are closely awaiting the upcoming second-quarter results and management commentary for potential stock re-ratings.
- •Key focus areas for the Street include net interest margin recovery, deposit mobilization, and balance sheet optimization.
Key Questions Answered
Analysts polled on Bloomberg show a consensus of 47 'buy' calls, two 'hold' calls, and no sell calls for HDFC Bank. Brokerages like Emkay Global, Morgan Stanley, and Kotak Institutional Equities have maintained 'buy' ratings with respective target prices of Rs 1,225, Rs 1,025, and Rs 1,050 apiece.
Brokerages view the September FY27 quarter results and management commentary as the next major trigger for a potential stock re-rating. Analysts want to closely track factors like the net interest margin trajectory, merger synergies, and CASA ratio improvement under incoming CEO Anup Bagchi before adjusting their expectations.
HDFC Bank's net interest margin has remained below 3 percent since the second quarter of FY24 following the merger with HDFC Ltd. Analysts expect margins to recover gradually as the impact of higher-cost liabilities inherited from the mortgage lender fades.
