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HDFC Bank’s battered valuation offers rerating scope under new CEO Anup Bagchi

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HDFC Bank’s battered valuation offers rerating scope under new CEO Anup Bagchi

HDFC Bank’s battered valuation offers rerating scope under new CEO Anup Bagchi

HDFC Bank’s 25 per cent stock decline over the past year has compressed valuations, while four brokerages retain BUY ratings with targets of Rs 880-1,225. The focus now shifts to whether the upcoming MD & CEO Anup Bagchi can drive growth and earnings recovery.

HDFC Bank shares have declined around 25 per cent over the past year, according to Motilal Oswal and Emkay

Emkay sees the strongest upside, with a target price of Rs 1,225 versus a CMP of Rs 721

PL Capital has a Rs 950 target, while Motilal Oswal has a Rs 925 target

Brokerages expect earnings growth to improve from FY28, supporting a medium-term rerating

Key monitorables include deposit growth, NIM recovery, LDR, merger synergies and management stability

Largest private sector lender HDFC Bank ’s stock has significantly underperformed over the past year, with the share price down around 25 per cent, according to Emkay and Motilal Oswal. Motilal Oswal also said the stock had declined 25 per cent over the past year and 8 per cent over five years. The prolonged weakness has also resulted in a significant de-rating of the stock. Emkay said the valuation has become attractive following the prolonged underperformance and expects a sustained rerating as the new leadership delivers on key business priorities. It also said a moderation or reversal in FPI outflows as geopolitical uncertainty eases could support the rerating. Advt

The appointment of Anup Bagchi as Managing Director & CEO has removed one of the key uncertainties surrounding the bank, according to the brokerages.


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