Jefferies Starts HDFC Bank (HDB) with a Buy Rating

Core Viewpoint - HDFC Bank Limited (NYSE:HDB) is highlighted as a strong dividend stock with a Buy rating initiated by Jefferies, which set a price target of INR 900 [1][2]. Group 1: Company Overview - HDFC Bank, founded in 1994 and based in Mumbai, is one of India's leading banks, providing a range of services including deposits, loans, cards, insurance, investments, and digital banking [4]. Group 2: Financial Projections - Jefferies projects HDB will achieve an 18% growth in Assets Under Management (AUM) and a 22% growth in Earnings Per Share (EPS) from FY25 to FY28e [3]. - Return on Equity (ROE) is expected to increase from 13% in FY26e to 16% by FY28e, following a planned capital raise, despite anticipated muted performance in FY26 [3]. Group 3: Market Position - HDB is noted for its competitive position due to its diverse portfolio, extensive reach, large client network, and efficient funding structure [1]. - The stock is currently trading approximately 10% below its IPO level and at a discount compared to competitors like CIFC and BAF, which report higher ROE [3].