Jefferies has maintained its buy rating on HDFC Bank with a target price of ₹1,200 per share, implying an upside of about 24 percent from the current market price of ₹966.30.
Following management interactions, the brokerage noted that the Goods and Services Tax (GST) reforms are expected to lift credit demand, while the impact of US tariffs on the bank and the sector’s loan portfolio should remain limited. Asset quality was highlighted as stable to improving, supporting confidence in the bank’s balance sheet strength.
Jefferies added that loan growth guidance remains in line with the sector for FY26, with an acceleration expected in FY27. Operational efficiencies are anticipated to emerge meaningfully from FY27, supported by digital platforms and breakeven at new branches.
The brokerage said improving growth, stable asset quality, and digital-led efficiencies are likely to aid earnings and valuations for HDFC Bank in the medium term.
Disclaimer: The views and recommendations expressed in this article are those of Jefferies. This publication does not provide investment advice. Readers are advised to consult certified financial advisers before making any investment decisions.
