HDFC Bank Ltd, the most-valued bank on Dalal Street is making a slow comeback after recent underperformance. The stock today gained nearly 1% in early trade, rising to ₹956. Given the stock’s recent underperformance versus the Nifty Bank over the past one month, analysts said the risk-reward had turned favourable and maintained their ‘Buy’ rating on the stock. The stock has gained 13.7 percent over the past one year, outperforming the benchmark Nifty 50, which has returned less than 11 percent over the same period.Elara Securities said HDFC Bank's Q4 profit was ahead of its estimates on higher treasury income, even as core pre-provision operating profit (ex-treasury) was in line with its estimates.
"Characteristically Q3FY26 had steady undertones, underlying steady progress. Q3FY26 saw steady loan growth outcomes, up 12 per cent YoY & 2.7 per cent QoQ, with the bank confident of tracking above system growth in FY27. Q3 NIM surprised, up 8 bps QoQ, feeding into 3.4 per cent QoQ NII growth. Better liquidity scenario and changes in regulatory approach played in favor of HDFC Bank, making balance sheet realignment easier," the brokerage said.
Nuvama said HDFC Bank reported a beat on core PPOP in Q3FY26, driven by higher core non-interest income and lower core operating expenses. It said higher trading gains were offset by a one-time wage provision related to the new labour codes.JM Financial, meanwhile, downgraded the stock to 'ADD' and revised its target price to Rs 1,050 from Rs 1,160 earlier, valuing the core bank at 2 times FY28E standalone book value and applying a 15 per cent discount to ICICI Bank due to relatively lower growth.HDFC Bank share price has fallen 6% in one month, and more than 7% in three months. The stock has gained 13% in one year and has rallied 25% in five years.