Jefferies has reaffirmed its ‘Buy’ rating on HDFC Bank and increased its target price to ₹2,340 per share following a strong Q4 performance. The bank reported a profit of ₹176 billion, up 7% year-on-year (10% excluding one-offs), exceeding expectations. The uptick in loan growth to 5% and improved margins were key drivers of this beat.
The brokerage highlighted that with deposit growth remaining healthy and significant correction in LDR (8 percentage points YoY to 96%) already absorbed, the stage is set for a credit growth rebound in FY26 and FY27.
While Jefferies foresees better cross-selling opportunities and stable credit costs aiding profitability, it also cautioned that potential rate cuts may temporarily pressure NIMs. Consequently, it has trimmed FY26-27 EPS estimates by 3-4%.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
