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HDFC Bank stock's re-rating still some time away, say analysts

HDFC Bank shares: Analysts believe a re-rating in the stock would happen as and when more clarity emerges on the smooth merger with HDFC Ltd

HDFC Bank: Near-term hiccups to continue as merger timeline gets delayed
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Nikita Vashisht New Delhi

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HDFC Bank Q4 review: HDFC Bank's January-March quarter (Q4) results, for financial year 2022-23 (FY23), brought no cheer to investors as elevated costs, and merger-related uncertainties continue to dent the sentiment.

Moreover, analysts fear that merger-related costs may put pressure on margins and cost to income ratio in the near-term, while the return on equity could moderate owing to low leverage of the parent. Analysts, therefore, opine that the stock's re-rating may be some time away.

"While the risk of a de-rating on a standalone basis appears to be quite low given that the business performance is holding up well,

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First Published: Apr 17 2023 | 12:06 PM IST

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