In March 2020, two foreign brokerages had two opposing views on India’s largest private-sector lender, HDFC Bank. Bernstein had a ‘sell’ rating with a target price of INR750, while UBS had a ‘buy’ at INR1,480. The stock was at INR1,135.Gautam Chhugani, the analyst at Bernstein, had a simple observation. In his report he said that HDFC Bank is most exposed to unsecured credit risk towards lower-salaried people. But UBS’s Vishal Goyal had a
Business News›Prime›Markets›HDFC Bank’s underperformance makes it attractive. Should you buy now or wait a bit?
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HDFC Bank’s underperformance makes it attractive. Should you buy now or wait a bit?
Synopsis
HDFC Bank has been underperforming for the last two years. Even its premium has fallen against other large private banks. While the stock is available at a relatively cheaper valuation, growth may not be the same as seen 10 years ago, say analysts. Will HDFC Bank reclaim its lost glory or do investors need to taper their expectations?
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