HDFC Bank, Eternal, Max Healthcare: Beaten-down stock ideas as market slips further
Emkay said HDFC Bank's credit growth trajectory has gradually improved to 12 per cent YoY from a historical low of 3 per cent in 3QFY25, and is set to outpace the system over FY27-28.
- Mar 17, 2026,
- Updated Mar 17, 2026 9:37 AM IST
Emkay Global on Tuesday said select stocks have overcorrected and fallen more than warranted, adding that it sees Eternal Ltd, Bajaj Finserv Ltd, HDFC Bank Ltd and Institute Ltd as attractive beaten-down ideas at this point.
Max Healthcare
The impact of the West Asia crisis on the medical value tourism of Max Healthcare is likely to be minimal, as such tourism contributes 9 per cent to the company’s overall revenue, Emkay Global said.
Emkay said the benefit of the CGHS pricing revision may positively impact revenue and Ebitda in FY27, which should negate the impact of war. It expects Max Healthcare to add 1,600 beds (65 per cent brownfield) in the next two years. Such expansion, along with the CGHS rate-hike, is expected to drive a 20/23 per cent CAGR in revenue/Ebitda during FY25-28E
"The stock has corrected 10.4 per cent since the start of the war. The company currently trades at FY28 EV/Ebitda of 23 times (6 per cent below its two-year LTA) and the current stock price is an attractive entry point for investors," Emkay Global said.
HDFC Bank Emkay said HDFC Bank's credit growth trajectory has gradually improved to 12 per cent YoY from a historical low of 3 per cent in 3QFY25, and is set to outpace the system over FY27-28E, as retail growth, in-turn led by mortgage and unsecured loans growth, accelerates.
"The RBI’s recent statement—to focus on LCR instead of LDR—too should provide comfort on HDFC Bank’s otherwise higher LDR. Better growth/margins to help claw back the 16 per cent RoE/20 per cent PAT growth trajectory," it said.
With the rate-cut cycle now largely behind, Emkay said the better portfolio mix towards retail and lower cost of funds should drive up core margins for the bank. This should in turn drive RoA to 1.9-2 per cent over FY27-28E from 1.8 per cent in FY26E and RoE to near pre-merge levels of 16 per cent, it said.
"We also expect PAT growth to improve to 15 per cent in FY27E and to 20 per cent in FY28E, a level seen before the management transition/Covid. HDFC Bank’s minimal overseas credit exposure and strong track record in managing asset quality across cycles make it a relatively defensive play amid macro uncertainty. With growth expected to re-accelerate from a low post-merger base, the stock offers a compelling recovery story and currently trades at attractive valuations, implying 47 per cent upside to our target price of Rs 1,225," Emkay Global said.
Eternal Ltd | Target: Rs 370 Emkay Global said the LPG shortage is a short-lived drag, saying the long-term growth stayed intact. The LPG shortage has hit Swiggy Ltd and Eternal Ltd operations, with smaller restaurants trimming menus or shutting down, reducing order volume by 5-10 per cent in Q4FY26, and shifting share to QSRs with better inventories.
"This could cut the adjusted Ebitda of the food delivery business by 10-20 per cent, trimming margins from 5.4 per cent (Q3FY26) to 4.7-5 per cent. Zomato's food delivery, Blinkit, and ‘District’ segments offer a huge growth runway. Eternal's superior unit economics and consistent consensus beats since listing showcase its superior execution in execution-heavy complex businesses," Emkay said.
Contrary to market view of Eternal nearing the growth ceiling, Blinkit’s disruption—ideal for India's dense urban, low-labor-cost, expensive-real-estate environment—targets a vast TAM, positioning Eternal for another phase of outperformance as quick commerce consolidates, Emkay said.
"It said the volatile market would restrict capital infusion in the competition. "We believe the sharp correction in Eternal’s stock price offers an attractive risk-reward. At current valuations, the Street sees near-term challenges in the restaurant business and possible demand slowdown due to higher oil price. However, we believe that long-term demand will continue to shift to Quick Commerce (QCom), with Blinkit executing better than the competition. We think the volatile markets would make it difficult for competitors like Zepto to raise money and would lower the competitive intensity. We maintain BUY on the stock and target of Rs 370," it said.
Emkay Global on Tuesday said select stocks have overcorrected and fallen more than warranted, adding that it sees Eternal Ltd, Bajaj Finserv Ltd, HDFC Bank Ltd and Institute Ltd as attractive beaten-down ideas at this point.
Max Healthcare
The impact of the West Asia crisis on the medical value tourism of Max Healthcare is likely to be minimal, as such tourism contributes 9 per cent to the company’s overall revenue, Emkay Global said.
Emkay said the benefit of the CGHS pricing revision may positively impact revenue and Ebitda in FY27, which should negate the impact of war. It expects Max Healthcare to add 1,600 beds (65 per cent brownfield) in the next two years. Such expansion, along with the CGHS rate-hike, is expected to drive a 20/23 per cent CAGR in revenue/Ebitda during FY25-28E
"The stock has corrected 10.4 per cent since the start of the war. The company currently trades at FY28 EV/Ebitda of 23 times (6 per cent below its two-year LTA) and the current stock price is an attractive entry point for investors," Emkay Global said.
HDFC Bank Emkay said HDFC Bank's credit growth trajectory has gradually improved to 12 per cent YoY from a historical low of 3 per cent in 3QFY25, and is set to outpace the system over FY27-28E, as retail growth, in-turn led by mortgage and unsecured loans growth, accelerates.
"The RBI’s recent statement—to focus on LCR instead of LDR—too should provide comfort on HDFC Bank’s otherwise higher LDR. Better growth/margins to help claw back the 16 per cent RoE/20 per cent PAT growth trajectory," it said.
With the rate-cut cycle now largely behind, Emkay said the better portfolio mix towards retail and lower cost of funds should drive up core margins for the bank. This should in turn drive RoA to 1.9-2 per cent over FY27-28E from 1.8 per cent in FY26E and RoE to near pre-merge levels of 16 per cent, it said.
"We also expect PAT growth to improve to 15 per cent in FY27E and to 20 per cent in FY28E, a level seen before the management transition/Covid. HDFC Bank’s minimal overseas credit exposure and strong track record in managing asset quality across cycles make it a relatively defensive play amid macro uncertainty. With growth expected to re-accelerate from a low post-merger base, the stock offers a compelling recovery story and currently trades at attractive valuations, implying 47 per cent upside to our target price of Rs 1,225," Emkay Global said.
Eternal Ltd | Target: Rs 370 Emkay Global said the LPG shortage is a short-lived drag, saying the long-term growth stayed intact. The LPG shortage has hit Swiggy Ltd and Eternal Ltd operations, with smaller restaurants trimming menus or shutting down, reducing order volume by 5-10 per cent in Q4FY26, and shifting share to QSRs with better inventories.
"This could cut the adjusted Ebitda of the food delivery business by 10-20 per cent, trimming margins from 5.4 per cent (Q3FY26) to 4.7-5 per cent. Zomato's food delivery, Blinkit, and ‘District’ segments offer a huge growth runway. Eternal's superior unit economics and consistent consensus beats since listing showcase its superior execution in execution-heavy complex businesses," Emkay said.
Contrary to market view of Eternal nearing the growth ceiling, Blinkit’s disruption—ideal for India's dense urban, low-labor-cost, expensive-real-estate environment—targets a vast TAM, positioning Eternal for another phase of outperformance as quick commerce consolidates, Emkay said.
"It said the volatile market would restrict capital infusion in the competition. "We believe the sharp correction in Eternal’s stock price offers an attractive risk-reward. At current valuations, the Street sees near-term challenges in the restaurant business and possible demand slowdown due to higher oil price. However, we believe that long-term demand will continue to shift to Quick Commerce (QCom), with Blinkit executing better than the competition. We think the volatile markets would make it difficult for competitors like Zepto to raise money and would lower the competitive intensity. We maintain BUY on the stock and target of Rs 370," it said.