Synopsis:
Jefferies, the global brokerage, has reaffirmed HDFC Bank as its top pick in the banking sector for 2025, setting a target price of Rs. 1,200 per share.
This bank is a leading private sector bank in India, known for its strong retail banking presence, robust financial performance, and extensive digital banking solutions is now in focus after Jefferies indicated an upside potential of 24% With market capitalization of Rs. 14,84,279 cr, the shares of HDFC Bank Ltd are closed at Rs. 966.50 per share, from its previous close of Rs. 966.85 per share.
News
Jefferies has assigned a target price of Rs. 1,200 to HDFC Bank, suggesting an upside of approximately 24% from its current trading level. The brokerage points to the bank’s strengthening loan growth, consistent asset quality, and enhanced operational efficiency as primary factors supporting its earnings growth and attractive valuation.
Jefferies maintains a BUY rating on HDFC Bank, expecting continued strong deposit growth, stable credit costs, and enhanced efficiency especially from FY27 onward due to new technology and breakeven branch expansion.
The target price valuation is based on 2.5 times the adjusted price-to-book value for September 2027, reflecting confidence in the bank’s growth and operational outlook over the coming years.
The brokerage maintains its BUY rating for HDFC Bank, projecting a 12% compound annual growth rate (CAGR) in loans Management optimism about demand recovery due to GST and income tax cuts, alongside a reduction in competitive pressures from PSU banks, underpins the positive view.
Jefferies also expects improved operational efficiencies from branch breakeven and new technology implementation by FY27, which should lower the cost-to-income ratio.
Also read: 20% Upper Circuit: Stock skyrockets after HDFC Securities gives buy rating with 33% upside
About the company
HDFC Bank Limited is one of India’s leading private sector banks, offering a wide range of financial products and services across retail banking, wholesale banking, and treasury operations.
Established in 1994, it has a strong presence in both urban and rural markets, focusing on customer-centric solutions such as savings and current accounts, loans, credit cards, and investment services. Known for its robust digital infrastructure and consistent financial performance, HDFC Bank plays a key role in India’s banking sector.
On a year-over-year basis, the bank’s sales increased by 7%, reaching Rs. 87,372 crore compared to Rs. 81,546 crore in Q1FY25. Net profit fell marginally by 1%, from Rs. 17,188 crore in Q1FY25 to Rs. 17,090 crore in June 2025, while EPS decreased by 2% to Rs. 10.60 from Rs. 10.83.
Written by Manideep Appana
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