HDFC Bank Stock Gets Fresh ‘Buy’ Calls From JPMorgan, Morgan Stanley, and Jefferies; Check the Upside

Synopsis: HDFC Bank gains as JPMorgan, Morgan Stanley, and Jefferies maintain bullish ratings, with target prices of Rs. 990-1,050, implying upside potential of up to 32.18%.

This Private Sector Bank Stock, engaged in providing banking and financial services, including retail banking, corporate banking, loans, deposits, digital banking, payments, treasury, and wealth management solutions, jumped 0.84 percent after leading global brokerages reaffirmed their bullish stance on the stock. 

JPMorgan, Morgan Stanley, and Jefferies maintained their positive ratings, citing easing governance concerns following the completion of independent legal reviews. The global brokerages believe the removal of this key overhang, along with the bank’s strong fundamentals and attractive valuations, could support a further re-rating, with target prices ranging from Rs. 990 to 1,050, indicating potential upside of up to 32 percent.

With a market capitalization of Rs. 12,29,641.99 crore, the shares of HDFC Bank Limited were currently trading at Rs. 798.40 per equity share, down nearly 0.08 percent from its previous day’s close price of Rs. 799.00.

What is the News?

JPMorgan, a prominent brokerage firm, has recommended a “Overweight” call on HDFC Bank Limited with a target price of Rs. 990 per share, indicating an upside potential of 24 percent from its current price of Rs. 798.40. 

JPMorgan has maintained its Overweight rating on HDFC Bank after the external counsel’s report concluded its review. The report is expected to ease governance-related concerns that had weighed on investor sentiment. Following the resignation of the former part-time chairman, the stock had underperformed, with its valuation declining and the discount to ICICI Bank widening significantly.

With governance concerns likely to reduce, JPMorgan believes the valuation gap could narrow over time. The brokerage also expects HDFC Bank to benefit from the recently announced FCNR initiatives, which may support deposit growth and strengthen the bank’s funding position. These factors, along with the bank’s strong fundamentals, support JPMorgan’s positive outlook and target for the stock.

Likewise, Morgan Stanley has recommended a “Overweight” call on HDFC Bank Limited with a target price of Rs. 1,025 per share, indicating an upside potential of 28.38 percent from its current price of Rs. 798.40. 

Morgan Stanley has maintained its Overweight rating on HDFC Bank after law firms completed their review related to the resignation of the former chairman. The brokerage believes the completion of the review removes a key uncertainty and should improve investor confidence. As governance concerns ease, sentiment towards the stock is expected to strengthen, supporting its long-term investment outlook.

Similarly, Jefferies has recommended a “Buy” call on HDFC Bank Limited with a target price of Rs. 1,050 per share, indicating an upside potential of 31.51 percent from its current price of Rs. 798.40. 

Jefferies has maintained its Buy rating on HDFC Bank after law firms found no evidence to support the former chairman’s comments. The brokerage believes this outcome is a positive development and removes a key overhang that had affected investor confidence.

Jefferies expects the review to pave the way for the appointment of a new chairman. With governance concerns easing and valuations remaining attractive, the brokerage continues to view HDFC Bank as one of its top stock picks.

Branch Network & Customer Base:

As of March 2026, HDFC Bank Limited plans to expand its branch network to 9,689 branches, ensuring a strong presence across the country. The network will be well balanced, with 29 percent of branches in metro areas, 21 percent in urban regions, 33 percent in semi-urban locations, and 17 percent in rural areas, helping improve customer access and support future business growth.

At the same time, the customer base is expected to reach 101 million by March 2026, reflecting steady growth in its franchise. A larger customer base, supported by an expanding branch network and strong digital banking services, is expected to drive higher business volumes, deepen customer relationships, and strengthen the bank’s leadership position in India’s banking sector.

Company Overview:

HDFC Bank Limited is one of India’s largest banking and financial services institutions. Founded in 1994 and headquartered in Mumbai, it grew into the country’s largest private-sector bank by assets and market capitalization, serving millions of retail, business, and institutional customers across India.

Recent Quarter Results:

Coming into financial highlights, HDFC Bank Limited’s Net Interest Income has increased from Rs. 39,793 crore in Q4 FY25 to Rs. 41,962 crore in Q4 FY26, which has grown by 5.45 percent. The net profit has also grown by 9.28 percent from Rs. 19,284 crore in Q4 FY25 to Rs. 21,074 crore in Q4 FY26.

HDFC Bank Limited’s revenue and net profit have grown at a CAGR of 22 percent and 19 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 7.04 percent and 13.8 percent, respectively. HDFC Bank Limited has an earnings per share (EPS) of Rs. 49.4, and its debt-to-equity ratio is 6.34x.

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