Now Reading: HDFC Bank stock still not a buy despite low valuations: analyst
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HDFC Bank stock still not a buy despite low valuations: analyst
HDFC Bank stock still not a buy despite low valuations: analyst
Coheron Wealth's Aditya Agarwal has advised caution on HDFC Bank stock, saying that despite low valuations, the stock does not yet offer a buying opportunity. He expects the stock to consolidate or…
Coheron Wealth's Aditya Agarwal has advised caution on HDFC Bank stock, saying that despite low valuations, the stock does not yet offer a buying opportunity. He expects the stock to consolidate or dip further over the next few weeks, with an attractive buying zone at Rs 670-680, implying a potential 7-8% downside from current levels.
Agarwal said HDFC Bank will likely remain a 'market performer' rather than an outperformer, warning that cheapness without price strength can become a value trap. He recommended 'scatter buying' on declines towards the Rs 650-670 band instead of chasing the stock at current levels.
The broader banking pack also shows divergence, with PSU banks showing relative strength while private lenders remain under pressure. Agarwal flagged weakness in Axis Bank and profit-booking in ICICI Bank as well.
Indian Opinion Analysis
HDFC Bank shares have underperformed the Nifty 50 over the past year, weighed by merger integration overhang and higher deposit costs. The stock trades near its lowest valuation in five years, yet momentum favours PSU banks and other sectors. For retail investors, the key question is whether a 7-8% further decline to the Rs 670-680 zone offers enough margin of safety before the next catalyst – the bank's Q3 earnings in January. A decisive close above Rs 750 would signal a reversal, below Rs 650, the support breakdown could extend the correction.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
