HDFC Bank analysts remain optimistic on stock touching ₹1,200 levels; Details here

Most analysts having coverage on HDFC Bank continue to retain their "buy" recommendation on the stock after the lender reported its fourth quarter business update over the long weekend.

The analysts see targets of as high as ₹1,200 on India's largest private lender, which implies an upside potential of as high as 60% from current levels.

HDFC Bank's business update for the fourth quarter was above expectations and its Credit-Deposit Ratio also declined on a sequential basis. Advances for the quarter were up by 12%, while deposits also grew by 14% year-on-year for the March quarter.

Credit-Deposit Ratio for the quarter fell to 95.31% from 98.5% last quarter.

What Are Analysts Saying?

Bernstein maintained its "outperform" rating on HDFC Bank with a price target of ₹1,150.

The brokerage said that the provisional update for the quarter had enough to address the LDR concerns that had cropped up during the last quarter.

A near-identical loan and deposit growth on a sequential basis means that HDFC Bank is unlikely to see any surprise margin compression, particularly due to the continued improvement in CASA growth, the brokerage said in its note.

However, Bernstein flagged that loan growth stagnating at 12%, potentially lower than the system growth would be the only complaint during the quarter.

"Overall, see deposit trajectory to be healthy and see no risk to the steady EPS growth improvement trajectory that the bank is delivering on," Bernstein's note said.

Along with Bernstein, Macquarie also maintained its "outperform" rating on HDFC Bank with a price target of ₹1,200.

The brokerage said that while some year-end deposit-related flows could be included in Q4, the focus is on period-end numbers as both bank-reported data and RBI system numbers are period-end based.

"In our view, HDFC Bank's current deposit growth implies it could be around 200-300 basis points ahead of the system growth in financial year 2026, which we see as a good outcome," Macquarie stated in its note.

The strong performance should allay investor fears for now, according to Macquarie, who also highlighted LDR falling to 95% as a positive.

47 analysts cover HDFC Bank, of which 46 have a "buy" rating and one has a "hold" recommendation. The consensus estimates of price targets implies an upside potential of close to 50% from current levels.

Shares of HDFC Bank recovered over 3.5% from the lows on Thursday to end with gains of over 1% at ₹751.1. The stock will be in focus for two more reasons, which you can find here.