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HDFC Bank Still A 'Buy' For PL Capital Despite Target Price Cut — Here's Why

Sashidhar Jagdishan's exit would be negative and near-term pressure may persist till succession clarity emerges, although HDFC Bank is attractive at 1.4 times Mar'28E core ABV, but medium-term return would hinge on strategy and execution, adds the brokerage.

HDFC Bank Still A 'Buy' For PL Capital Despite Target Price Cut — Here's Why
While the Board has not announced a successor, Mr. Kaizad Bharucha (Deputy MD) may be appointed to bring stability, and he is eligible to be in office under RBI norms until Apr'29.
(Photo: NDTV Profit)
STOCKS IN THIS STORY
HDFC Bank Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

PL Capital Report

PL Capital has trimmed its multiple to 1.9 times from 2.1x. and trimmed HDFC Bank Ltd.'s target price to Rs 950 from Rs 1,040 and manintained ‘Buy' on the stocks.

HDFC Bank informed exchanges on August 29, that Mr. Jagdishan has decided not to seek re-appointment as MD & CEO upon completion of his current term on Oct, 26 2026, despite board's persuasion; his exit comes after challenges on corporate governance.

While the Board has not announced a successor, Mr. Kaizad Bharucha (Deputy MD) may be appointed to bring stability, and he is eligible to be in office under RBI norms until Apr'29.

ALSO READ: SBI FM Rated 'Buy' On Motilal Oswal's Coverage Initiation — Check Target Price

The bank may also put forward an external name. This event would be negative and near-term pressure may persist till succession clarity emerges, although stock is attractive at 1.4x Mar'28E core ABV, (30% discount to ICICIB) but medium-term return would hinge on strategy and execution.

Click on the attachment to read the full report:

Pl Capital Hdfc Bank.pdf
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