Buy HDFC Bank; target of Rs 2300: Sharekhan

Sharekhan's research report on HDFC Bank

Q4FY25 earnings were decent with a slight beat on earnings led by a rise in NIM, which was a key positive surprise. Asset quality remained pristine. However the RBI’s repo rate cut of 50 bps would pressurize NIMs from the next quarter. Deposit traction remained healthy. Loan growth was modest which led to LDR decline to 96.5%. The bank is well positioned to deliver credit growth in line with system growth in FY26E.

Outlook

The stock trades at 2.2x/1.9x its FY2026E/FY2027E core BV estimates. We maintain BUY with a revised PT of Rs. 2,300 and remain assertive from the medium to long term.