HDFC Bank Shareholders Stunned as CLSA Unveils Downgrade and Lowered Target Price

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By Umesh Sharma

HDFC Bank Shareholders Stunned as CLSA Unveils Downgrade and Lowered Target Price

HDFC Bank faces a setback as global brokerage firm CLSA downgrades its stock rating from ‘Buy’ to ‘Outperform’, alongside a reduction in the target price by 2,050 rupees to 1,650 rupees per share. Concerns over the bank’s deposit growth pace and margin recovery have led to this downgrade, raising doubts about its future performance.

HDFC Bank Shareholders Stunned as CLSA Unveils Downgrade and Lowered Target Price

HDFC Bank Shares: Navigating the 52-Week Low Storm


  1. HDFC Bank Share Rating Downgraded by CLSA with 1% Price Drop
  2. HDFC Bank Share Price Plummets After CLSA Downgrade: Investors Beware!
  3. CLSA’s Downgrade of HDFC Bank Sparks Debate: Is the Bank Facing a Crisis?

In a surprising turn of events, HDFC Bank witnessed a decline in its share rating and target price as CLSA, a renowned global brokerage firm, downgraded its stance on the bank’s stock. The downgrade came with a significant reduction in the target price from 2,050 rupees to 1,650 rupees per share. This move by CLSA has sent ripples across the financial market, raising concerns among investors about the prospects of HDFC Bank.

Analysts at CLSA attributed the downgrade to sluggish deposit gathering pace and concerns regarding margin recovery. They cautioned that HDFC Bank might face challenges in coping with double hurdles on deposits, namely high asking rates and challenging environments. Moreover, they anticipate a slower Net Interest Margin (NIM) recovery, which could deviate from the initially projected ‘V-shape’ to a ‘U-shape’. These factors collectively contributed to the revised outlook on HDFC Bank’s stock by CLSA.

The repercussions of this downgrade were immediately felt in the market, with HDFC Bank’s share price taking a hit. Starting the day at 1,429.50 rupees on the Bombay Stock Exchange (BSE), the bank’s share witnessed a 1% decline from the previous closing. The 52-week range for HDFC Bank’s share stands between 1,757.80 rupees (high) and 1,363.45 (low).

While CLSA’s downgrade casts doubt over HDFC Bank’s future, analysts from other brokerage firms such as HSBC and Citi hold a bullish outlook. HSBC analysts previously offered a ‘Buy’ call with a target price of 1,750 rupees per share, emphasizing the potential for annual growth rates ranging from 15% to 29% between FY24 and FY27. They highlighted the significance of curbing loan growth and its positive impact on the bank’s financial metrics. Similarly, analysts from Citi expressed optimism by providing a target price of 2,050 rupees per share.

The divergence in opinions among analysts underscores the uncertainty prevailing in the market regarding HDFC Bank’s trajectory. While some foresee challenges ahead, others remain bullish on its long-term growth prospects. Investors are now closely monitoring the developments within the banking sector, awaiting further clarity on HDFC Bank’s performance amid these contrasting viewpoints.


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