HDFC Bank at 16-year low: JPM upgrades, Jefferies sees 64% upside

• HDFC Bank's valuation hits a 16-year low, trading at 1.5x FY28 estimated P/B after a 24% year-to-date decline.
• JPMorgan upgrades HDFC Bank to 'Overweight' with a target of ₹1,010, citing improving risk-reward and attractive valuations.
• Jefferies reiterates 'Buy' with a target of ₹1,240, projecting a 64% upside, making it a top pick in the banking sector.
• Upgrade factors include expected credit growth recovery, improved RoA, and strong asset quality in an uncertain macro environment.
• Stock trades at a 17% discount to ICICI Bank and is considered attractive due to strong asset quality, growth prospects, and stable RoE.