Global Analyst Maintains 'Buy' On HDFC Bank Ahead Of Results

  • Benzinga India
  • Stock Market News
Global Analyst Maintains 'Buy' On HDFC Bank Ahead Of Results
Credit: © Reuters.

Benzinga - HDFC Bank’s share price continued to make losses for the third straight session on Tuesday as macro factors weighed down the market.

What Happened: Jefferies maintained its “buy” rating for the stock with a price target of ₹1,800. The target implies an around 20% upside from the stock’s last closing price of ₹1,495.75.

The research firm suggested that if the lender achieves a deposit growth rate of 17-18% CAGR over March 2024 and March 2029, the bank can sustain loan growth at around 13%. Jefferies also points out that improvement in the bank’s net interest margins (NIMs) is crucial for a rise in return on assets (ROA) and potential valuation re-rating.

NIMs are a key metric for banks, representing the difference between the interest income generated from loans and the interest paid on deposits relative to the bank’s interest-earning assets. The private lender is set to report its earnings later this week on Saturday.

Price Action: HDFC Bank’s share price was down 0.70% to trade at ₹1,484.20 as the markets opened on Tuesday.

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