HDFC Bank Share Price Target 2026: Despite the company’s recent difficulties, brokerage firm Jefferies has remained bullish about HDFC Bank, the largest private bank in India.
Atanu Chakraborty, the bank’s part-time chairman, resigned recently, raising concerns over internal changes that he claimed did not correspond with his own ethics and principles.
Concerns about governance were raised by this move, which resulted in significant selling pressure on the bank’s stock.
As of right now, HDFC Bank’s share price has dropped 3.3%, or Rs 26, to Rs 756.25. Despite this, Jefferies believes that the market price will rise by 64% due to favorable values and lagging peers. (Share Price of HDFC Bank)
Jefferies’ take on HDFC Bank
The firm noted out that HDFC Bank’s shares has underperformed its competitors by almost 24% so far this year. But because of this adjustment, values are now more appealing.
Brokerage claims that HDFC Bank is now selling at a discount to rivals like ICICI Bank, at about 1.6x price-to-book and 13x price-to-earnings.
The bank is one of Jefferies’ top selections in the industry. Net profit is expected to reach Rs 922 billion by FY28, while loan growth is expected to take place at a compound annual growth rate (CAGR) of almost 13% between FY26 and FY28.
Net interest margins (NIM), which are expected to be about 3.5%, are predicted to stay steady. It is also observed that return on equity (ROE) is remaining consistent at 14%. With gross non-performing assets (GNPA) estimated at around 1.2% and net non-performing assets (NNPA) at roughly 0.4%, asset quality remains a strong point.
Jefferies said that the recent merger’s benefits are probably going to boost expansion and boost operational effectiveness. Stronger deposit growth and increased leadership clarity are important stock catalysts.
However, Jefferies cautioned that risks remain, particularly around integration challenges, deposit mobilisation, and management transition.
Other brokerages on HDFC Bank
It’s not just Jefferies that is optimistic about HDFC Bank. Bullish ratings have also been reaffirmed by a number of domestic and international brokerages:
- Bernstein: “Outperform” rating with a target price of Rs 1,150.
- Citi: “BUY” rating with a target price of Rs 1,200.
- Nirmal Bang: “BUY” rating with a target price of Rs 1,210.
- Emkay: “BUY” rating with a target price of Rs 1,225.
FAQs
1. What is the HDFC Bank share price target for 2026?
Brokerage firm Jefferies has set a target price of around â‚ą1,240, indicating a potential upside of nearly 64% from current levels.
2. Why has HDFC Bank’s share price recently declined?
The stock fell due to governance concerns following the resignation of part-time chairman Atanu Chakraborty, which triggered selling pressure among investors.
3. Why is Jefferies still bullish on HDFC Bank?
Jefferies believes the stock is undervalued compared to peers, with strong fundamentals, stable asset quality, and growth potential post-merger.
4. How does HDFC Bank compare to its competitors?
HDFC Bank is currently trading at a discount to peers like ICICI Bank, making it attractive from a valuation perspective.
5. What are the key growth expectations for HDFC Bank?
Jefferies expects loan growth at around 13% CAGR between FY26–FY28 and net profit to reach approximately ₹922 billion by FY28.
6. What is the outlook for HDFC Bank’s asset quality?
Asset quality remains strong, with gross NPAs estimated at around 1.2% and net NPAs at about 0.4%.
7. What are the key risks for HDFC Bank stock?
Risks include integration challenges post-merger, deposit mobilisation issues, and uncertainties related to management transition.
8. What do other brokerages say about HDFC Bank?
Firms like Citi, Bernstein, and Emkay Global Financial Services have also given “Buy” or “Outperform” ratings with targets ranging from ₹1,150 to ₹1,225.
9. What are the key financial metrics for HDFC Bank?
The bank is expected to maintain a net interest margin (NIM) of around 3.5% and a return on equity (ROE) of about 14%.
10. Is HDFC Bank a good investment for the long term?
While brokerages remain optimistic due to strong fundamentals and growth potential, investors should consider risks and consult financial advisors before investing.
