Private bank's stock with zero promoter stake trading near record high; what's next?

Private sector lender HDFC Bank is trading near its record high reached last week. The large cap stock reached its record high of Rs 1020 on October 20, 2025. Shares of the largest private lender by market capitalisation reached a high of Rs 1019.80 in the current session. The banking stock, which has zero promoter stake, has gained 25% from its 52-week low of Rs 812.13 reached on January 13, 2025. 

The bank has clocked a compounded annual growth rate (CAGR) of 21% in net profit in the last five years. 

During its Q2 earnings show, the bank reported a 10.8 per cent year-on-year (YoY) rise in standalone net profit. The bank reported a profit after tax (PAT) of Rs 18,641.28 crore compared to Rs 16,820.97 crore in the same period last year.

Net Interest Income (NII)—the difference between interest earned and interest expended—climbed 4.8 per cent to Rs 31,551.5 crore from Rs 30,113.9 crore a year ago. 

SBI Securities has a price target of Rs 1,110 on HDFC Bank. The bank is emerging from a strategic recalibration phase and is set to accelerate loan growth to 10% in FY26 and 13% in FY27, outpacing industry averages, the brokerage said. 

"Deposits grew 14% YoY in FY25 and 16% YoY in 1QFY26," the brokerage said adding that a more balanced funding structure should support the bank’s next growth phase.

"For FY25-FY27E, we expect NII/PPOP/PAT to grow at a CAGR of 13%/15%/13% to Rs 1.5 tn/Rs 1.3 tn/Rs 0.8 tn respectively. the stock is trading at a P/BV multiple of 2.7x/2.4x of its FY26E/FY27E book value estimates, respectively. The stock is presently trading below its 10-year average P/BV multiple of 3.8x; we expect the stock to rerate as the bank is back on the growth PAT trajectory," said the brokerage.  
    
Global brokerage Jefferies has a 'buy' rating on HDFC Bank. It raised the target price from Rs 1,200 to Rs 1,240 on the private lender. The brokerage firm highlighted the lender's strong loan growth and improving margin outlook, as mentioned earlier.

Asset quality improvement was boosted by corporate recovery, while deposit growth could be a key monitorable going forward. Jefferies also lifted HDFC Bank's earnings estimates by 2-6%, adding that the lender remains one of its top picks in the sector.