Nomura has reiterated its Buy rating on HDFC Bank, raising the target price to ₹2,190, which implies a 12% upside from the current market price of ₹1,956.00. The brokerage described the bank’s Q1FY26 as a steady operating quarter, though it noted a slightly soft performance on asset quality.
Nomura expects loan growth to pick up in the coming quarters, supporting an improvement in return ratios. The brokerage forecasts HDFC Bank to deliver Return on Assets (RoA) of 1.7–1.9% and Return on Equity (RoE) of 13–14.5% over FY26–28F.
The firm values the core banking business at 2.3x Jun-27F book value per share (BVPS), underscoring confidence in HDFC Bank’s structural growth story. Nomura believes the bank remains well positioned to benefit from a recovery in credit demand, aided by its large distribution footprint, improving margins, and strong capital base.
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.
