HDFC Bank’s shares steadied after a brief rise, while CLSA still believes the stock could climb as much as 28%.
Recent Share Movement
By early afternoon the stock was trading around ₹936.5, barely moving after hitting a high of ₹947.7 in the morning. Over the past year the shares have risen roughly 15%, beating the broader Nifty 50’s 11% gain.
CLSA’s Outlook
CLSA kept its Outperform rating and set a target price of ₹1,200 per share. The brokerage said the recent 6‑7% pullback after the Q3 FY26 update was driven more by temporary concerns than by any fundamental weakness.
- Deposit growth has slowed, but CLSA calls this a short‑term issue.
- The loan‑to‑deposit ratio rose to about 99%, yet the firm expects improvement in FY27.
- Valuation looks attractive: HDFC Bank trades at a 10‑12% price‑to‑book discount to peer ICICI Bank.
Valuation Snapshot
With a market cap of roughly ₹14.4 lakh crore, HDFC Bank is valued at about 19.9 times earnings and offers a dividend yield near 1.18%.
What Investors Should Watch
- Upcoming Q3 FY26 earnings report on 17 January.
- Potential bounce‑back in FY27 as the bank refines its margin strategy.
- Comparison of price‑to‑book multiples with other major lenders.
Remember, this is just a perspective, not a prediction. Always do your own research or consult a certified advisor before making any investment decisions.