Buy HDFC Bank; target of Rs 1950: Motilal Oswal

Motilal Oswal is bullish on HDFC Bank recommended buy rating on the stock with a target price of Rs 1950 in its research report dated January 16, 2024.

Broker Research

January 17, 2024 / 13:27 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on HDFC Bank

HDFC Bank (HDFCB) reported a mixed quarter with in-line PPOP and PAT, while deposit growth was modest at ~1.9% QoQ. Margin remained flat at 3.4% despite a rise in the CD ratio and deployment of excess liquidity on the balance sheet as LCR declined sharply to 110%. NII thus came in slightly lower than our estimate, but healthy other income (boosted by the treasury gains) led to in-line profitability. GNPA ratio improved 8bp QoQ to 1.3%, while PCR improved to 75%. Fresh slippages moderated to INR70b/1.2% of loans.

Outlook

We estimate HDFCB to deliver 17%/19% CAGR in loan/deposit over FY24- 26, while earnings compound at 20% CAGR, translating into an RoA/RoE of 1.9%/16.7% by FY26. We reiterate our BUY rating with a TP of INR1,950 (premised on 2.5x Sep’25E ABV + INR223 for subs).

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