HDFC Bank share price targets by CLSA, Goldman Sachs, Jefferies & Nomura

HDFC Bank has received thumbs up from foreign brokerages including CLSA, Goldman Sachs, Nomura and Jefferies following its June quarter results. This is after the private bank reported operationary in line results, with a a beat on pre-provision operating profit (PPOP) and profit, largely due to tax reversals. 

Jefferies said HDFC Bank's net profit was ahead of its estimate. Key positives from the results, it said, included better loan growth, healthy deposit growth, relatively lower fall in net interest margin (NIM) and stable asset quality. 

"Moreover, we are encouraged by expectation of better sector/bank level growth into 2H with benefit from tax cuts, rate cuts, easier rules festive season. HDFC Bank's growth should continue to improve & monetisation of merger synergies should help. Stays among our top picks," the brokerage said.

Jefferies suggested a revised target price of Rs 2,400 on HDFC Bank from Rs 2,340 earlier. It values HDFC Bank ADR at $92 against $88 earlier. On Monday, HDFC Bank shares were up 1.76 per cent at Rs 1,991.90. 

Goldman Sachs said Jefferies Q1 was operationally in-line with its estimates. The results reinforced its views that the bank is now ready to deliver on loan growth in line with its guidance while improving profitability underpinned by better NIMs in H2 and operating leverage as loan-deposit ratio related challenges are put behind.

"Despite a 100bps repo rate cut since Feb'25, the core PPOP-ROA was stable YoY while the loan growth accelerated to 7 per cent YoY. While the NIMs will adjust through the year, we believe pick up in loan growth should drive improvement in operating leverage, leading to a better operating profit growth from 12 per cent YoY in FY25 to 20 per cent in FY27," it said.

Goldman Sachs retained its 'Outperform' rating with a target of 2,327.

CLSA said adjusted for one-offs, HDFC Bank (HDFCB) reported a 1QFY26 NII/PPOP beat of 2 per cent/10 per cent against its estimates. The key highlights of the quarter, it said, were strong quarterly average (QA) deposit growth (both CASA and total) and NIM performance. 

While it expected an NIM reduction of 15 bps for large banks, HDFC Bank's surprised it with only an 11 bps core NIM moderation. 

"We keep our FY26-28 estimates largely unchanged and increase our target price from Rs 2,200 to Rs 2,300, driven by a change in our cost of equity assumptions. We maintain our O-PF rating," CLSA said.

Nomura said it values the HDFC Bank stock at 2.3 times June- 2027 BVPS (vs 2.3 times March 2027 earlier) to arrive at a target price of Rs 2,190 from Rs 2,140 earlier. It sees subsidiaries contributing Rs 240 per share against Rs 245 previously.