Home / Markets / News / HDFC Bank: Merger, valuation concerns may weigh in near-term, say analysts

HDFC Bank: Merger, valuation concerns may weigh in near-term, say analysts

HDFC Bank Q4 result analysis: We have seen a de-rating of the bank's multiple in recent years and we are again at a point where the risk of further de-rating is high, analysts say

At present, the headroom for FPI investment in HDFC Bank is 7.5 per cent

Web Exclusive Premium

4 min read Last Updated : Apr 19 2022 | 12:42 AM IST

Shares of HDFC Bank bled on the bourses on Monday as analysts foresee prolonged underperformance by the stock after a disappointing set of March quarter (Q4FY22) results. The stock tanked 4.7 per cent to Rs 1,395 apiece on the BSE as against a 2 per cent slide in the BSE Sensex.

According to experts, the stock is unlikely to be an outperformer among large banks in the near-term as the overhang of the merger with HDFC, and lack of differentiation in underwriting or return ratios post Covid are weighing heavily on the valuation multiple. Most brokerages have cut their target prices

Topics : HDFC Bank Markets HDFC Bank shares

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in