Motilal Oswal Securities Limited (MOSL) has reiterated its ‘Buy’ rating on HDFC Bank, assigning a target price of ₹2,050, reflecting a potential upside of 22.6% from the current market price of ₹1,671.90.
The brokerage noted that HDFC Bank delivered in-line earnings for the quarter, though margins contracted by 3 basis points QoQ. Asset quality witnessed marginal deterioration, but the gradual retirement of high-cost borrowings and improved operating leverage are expected to bolster return ratios in the coming year.
MOSL has revised its FY26/27 earnings estimates downward by 3% each, citing slower loan growth and CASA moderation. The bank is projected to deliver FY26E RoA/RoE of 1.8% and 13.9%, respectively.
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