UBS has added HDFC Bank to its APAC Key Call List with a Buy rating and target price of ₹1,000, implying an upside of 36.8% from the stock's closing price of ₹731.20 on Friday. According to CNBC TV18, the brokerage expects the uncertainty around HDFC Bank's leadership to be resolved in the coming weeks, following the submission of names to the Reserve Bank of India (RBI) for the chief executive officer position. UBS believes some of the potential downside scenarios related to leadership uncertainty are already reflected in HDFC Bank's valuation, making a resolution on the leadership front a potential catalyst for stock re-rating. The brokerage expects the uncertainty around the bank's leadership to be resolved in the coming weeks, following the submission of names to the Reserve Bank of India (RBI) for the chief executive officer position.
UBS believes the market is underappreciating HDFC Bank's branch expansion over the past three to four years, with around 42% of HDFC Bank's branches being less than five years old, compared with roughly 5-30% for other large banks. As these newer branches mature, the brokerage expects their productivity to improve, providing further support to deposit mobilisation and overall business growth. UBS has seen early signs of recovery in HDFC Bank's loan growth, which stood at 15.6% in Q1 FY27, with the brokerage expecting loan growth to improve toward 15% over FY27-29E. The bank trades at just 1.4x FY28E P/BV, representing a favourable risk-reward according to UBS analysis. UBS expects deposit growth to remain healthy, supported by measures taken by the RBI and improving liquidity conditions, with the brokerage expecting HDFC Bank's return on assets (RoA) to improve to 1.9% in FY27 and FY28, and the net interest margin (NIM) expected to improve towards 3.5%, driven by faster growth in higher-yielding retail loans.
HDFC Bank shares closed 2.55% higher at ₹731.20 on Friday, though the stock remains down around 26% on a year-to-date basis. According to CNBC TV18, HDFC Bank has broad analyst coverage with 47 out of 49 analysts tracking the stock having a 'Buy' rating, while two have a 'Hold' rating. The brokerage expects HDFC Bank's return on assets (RoA) to improve to 1.9% in FY27 and FY28, with the bank's net interest margin (NIM) expected to improve towards 3.5%, driven by faster growth in higher-yielding retail loans. Given these expectations, UBS said the risk-reward profile of HDFC Bank appears favourable at 1.4 times its estimated FY28 price-to-book value (P/BV).
Goldman Sachs maintains a Buy rating with target price of ₹5,870 on Hindustan Aeronautics Limited (HAL), citing improving platform deliveries across aircraft and helicopters. According to reports from NDTV Profit, the brokerage highlights that HAL's manufacturing portfolio is beginning to pick up with deliveries spanning fighter/trainer aircraft and helicopters. Citi also maintains a Buy rating with target price of ₹6,175, emphasizing execution broadening across platforms with multiple handovers demonstrating improving breadth of execution. CLSA maintains an Outperform rating with target price of ₹5,481, noting that HAL is the cheapest pure-play defence stock despite a sector leading position, trading at a deserved premium to global aerospace peers.
Jefferies maintains a Buy rating with target price of ₹395 on JSW Infrastructure, with management reiterating its target to double EBITDA over FY26-28E. According to NDTV Profit, growth will be led by Ports/Logistics capacity additions with 61% capacity addition targeted in FY27E versus FY26. The company aims for 2.2x capacity rise target over FY26-30 to 400 mnt by FY30E, with logistics ambitions gaining traction through terminal and rake additions.
