Brokerages said the decline in net interest margins was a disappointing factor. Even as most of the brokerages have maintained a ‘buy’ rating, they said the stock is not likely to outperform other large lenders. The stock ended down 4.7% at ₹1,395.35 on Monday.
Nomura has trimmed target price to ₹1,705 from ₹1,955 while retaining a ‘buy’ rating.
YES Securities has retained an ‘add’ rating on the bank but cut target price to ₹1,668 from ₹1,900.
Edelweiss has cut target price to ₹1,860 from ₹2,000 earlier while retaining a ‘buy’; while Emkay Global trimmed target price to ₹1,950 from ₹2,050.
Brokerages said uncertainties surrounding the merger could weigh on the stock going forward.
CLSA maintained a ‘buy’ rating on HDFC Bank but said it prefers ICICI Bank, Axis Bank and SBI over HDFC Bank.
Kotak Institutional Equities said the stock is unlikely to be an outperformer among large banks.
“We are again at a point where the risk of further de-rating is high if more uncertainties arise during the merger,” said Kotak Institutional.
