Brokerages turn bullish on HDFC Bank after sharp 26% correction

JP Morgan upgraded its rating on HDFC Bank to overweight, and Jefferies ranked the stock among its top sector picks, citing lower valuations following the nearly 26% decline in the shares in 2026. The stock fell 3.2% on Monday to Rs 731.8 as against the 16% drop in the Bank Nifty. A look at why the brokerages are bullish on the stock.

JP MORGAN
Price Target: Rs 1,010 Potential Upside: 38%

• Upgrade HDFC Bank to overweight from neutral; risk-reward turned favourable.
• Valuations at their lowest since the merger, and the core franchise strong See scope for a valuation re-rating as visibility on earnings acceleration over FY27-28 improves

JEFFERIES
Price Target: Rs 1,240 Potential Upside: 69%

• Among top bank picks; valuations are attractive
• Valuations at 1.6 times FY27 estimated Price to Book, 13 times Price to Earnings, at discount to ICICI Bank and low premium to peers
• Clarity on board-issues, and rollover of CEO term/ chairman appointment can aid rerating