Jefferies Starts HDFC Bank (HDB) with a Buy Rating

HDFC Bank Limited (NYSE:HDB) is one of the best dividend stocks to buy. On August 18, Jefferies began coverage of HDB, assigning a Buy rating and an INR 900 price target.

According to the investment firm, HDFC Bank Limited (NYSE:HDB) benefits from a competitive position through its diverse portfolio, extensive reach, large client network, and efficient funding structure.

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Jefferies estimates that HDB will achieve 18% growth in AUM and 22% growth in EPS between FY25 and FY28e. ROE is expected to climb from 13% in FY26e to 16% by FY28e after a planned capital raise, despite expectations of muted performance in FY26.

The stock is almost back to its IPO level, down roughly 10% from its high it hovered at right after the listing. It trades at a discount to competitors like CIFC and BAF that report bigger ROE.

According to Jefferies, major risks include a slowdown in growth, deterioration in asset quality, and changes in regulations around bank subsidiaries.

HDFC Bank Limited (NYSE:HDB), founded in 1994 and based in Mumbai, is one of India’s leading banks offering deposits, loans, cards, insurance, investments, and digital banking.

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Disclosure. None.