Update shared on27 Aug 2025
Fair value Decreased 50%Despite essentially unchanged revenue growth forecasts and discount rate, HDFC Bank's consensus analyst price target has been sharply reduced from ₹2277 to ₹1140.
What's in the News
- Shareholders approved an increase in authorised share capital and corresponding changes to the Memorandum of Association, expanding capital from INR 1,190.61 crore to INR 2,000 crore.
- The Board approved a 2:1 stock split and a special interim dividend of INR 5 per share for FY 2025-26.
- HDFC Bank completed a private placement that included new investor JPMorgan Emerging Markets Investment Trust plc.
- Appointment of M/s. B S R & Co. LLP as one of the Joint Statutory Auditors was approved, replacing Price Waterhouse LLP, subject to annual RBI approval.
- Reserve Bank of India imposed a penalty of INR 488,000 relating to an historical loan disbursement; the bank is also engaged in ongoing legal disputes regarding the recovery of a large defaulted loan from Splendour Gems Limited.
Valuation Changes
Summary of Valuation Changes for HDFC Bank
- The Consensus Analyst Price Target has significantly fallen from ₹2277 to ₹1140.
- The Consensus Revenue Growth forecasts for HDFC Bank remained effectively unchanged, at -2.7% per annum.
- The Discount Rate for HDFC Bank remained effectively unchanged, moving only marginally from 14.88% to 14.94%.
Disclaimer
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