Shares of HDB Financial Services, the non-banking finance arm of HDFC Bank, have slipped about 10 per cent from their highest level since listing, but brokerage Jefferies sees the decline as a buying opportunity and has given the stock a Buy rating with a target price of Rs. 900 per share.
Jefferies highlighted improving growth prospects and stabilising asset quality as key positives for HDB Financial, noting that credit costs may have peaked and returns are likely to improve over the medium term. The brokerage believes the current price offers a favourable risk-reward ratio for investors considering the stock at these levels.
The target price of Rs. 900 implies upside from current trading levels, reflecting Jefferies’ positive outlook on the company’s fundamentals and future performance. Investors will be watching operational trends and asset quality metrics closely as markets digest the latest analyst commentary.
