-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our forecasted FY 27 (Mar.) EPADS at INR167.50 (USD1.80) and introduce FY 28 EPADS of INR181.80 (USD1.95). We expect HDFC's loan growth to sustain at a low-teen level in FY 27, in line with our projected loan growth for Indian banking sector but softer than HDFC's target of above-industry growth. We see some pressure on NIM from increased mix of term deposits and the 25-bp cut in the repo rate in December 2025, but a shift in HDFC's funding base (toward more stable customer deposits from wholesale funding) will keep its NIM in a stable range in FY 27. We expect cost efficiency to improve as the benefits of technology/digital transformation come through, and credit costs to stay benign given its resilient asset quality. Our target price of USD33 (from USD35) is FY 27 P/EPADS of about 18.3x and a P/B of 2.5x (five-year mean: 22x and 3.3x), factoring in our projected FY 27/FY 28 ROE of 14%-15%, which are comparable to FY 25/FY 26 levels but lower than 16%-17% before the merger.