Bernstein has maintained its Buy rating on HDFC Bank and set a target price of ₹2,300, implying an 18% upside from the current market price of ₹1,956.00. The brokerage said the bank delivered a good set of numbers in Q1FY26, with headline EPS rising 11% year-on-year, though adjusted growth stood at 7% YoY after factoring in exceptional items.
The reported earnings included several one-offs, such as gains from the HDB Financial Services stake sale, floating and contingency provisions, and tax-related benefits. Even after adjusting for these, Bernstein considers the performance strong and consistent with the bank’s focus on long-term fundamentals.
A key positive, according to Bernstein, is the improvement in the loan-to-deposit ratio (LDR), which has now declined to 95%, suggesting that HDFC Bank is making progress in repairing its balance sheet. The brokerage believes this will enable the bank to return to healthy loan growth by FY27.
Bernstein expects HDFC Bank’s disciplined execution, strong provisioning buffer, and core operating stability to continue driving value over the medium term.
Disclaimer: The brokerage view is based on publicly available research and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
