HDFC Bank down 24% amid leadership change P/B 16-year low
HDFC Bank's stock has slid 24% this year, marking a 16-year low in its price-to-book (P/B) ratio and making it one of the weakest performers among major banks.
The drop comes as the bank navigates a leadership change and faces some market uncertainty, with its price-to-book ratio now at a post-merger low.
JPMorgan, Jefferies bullish on HDFC Bank
Even with the slump, big names like JPMorgan have upgraded HDFC Bank to overweight, citing an expected recovery in system-wide credit growth and the bank's strong AQR track record and robust liability franchise.
Jefferies is also bullish, giving the stock a buy rating and setting a target price that's 64% higher than where it closed last week.
Analysts think if things stabilize at the top and performance improves, HDFC could bounce back.