Are HDFC Bank stocks a better deal than ICICI Bank? Brokerages share their views

Shares of HDFC Bank and ICICI Bank are showing mixed signals on technical and valuation metrics. HDFC Bank is trading at a 10–12 per cent discount to ICICI Bank, with momentum indicators in the oversold zone, while ICICI Bank shows neutral technical trends.

Brokerages maintain positive ratings on both lenders, citing strong financials, long-term consistency, and a potential recovery for HDFC Bank in FY27.

ICICI Bank Metrics

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ICICI Bank closed at Rs 1,437 on the NSE, up 1.7 per cent. The stock has delivered a one-year return of 15 per cent and a five-year return of 162.2 per cent. Its market capitalisation stood at about Rs 10.3 lakh crore.

According to Trendlyne, ICICI Bank has a durability score of 70, indicating high financial strength based on long-term performance, stable revenues and balance sheet metrics. The score is among the highest within the large private banking peer group.

The bank’s valuation score stood at 45, placing it in the mid-valuation category. Trendlyne data showed the stock has spent 34.4 per cent of the time below its current price-to-earnings multiple of 19.3, placing it in the P/E buy zone based on historical averages.

On technical indicators, ICICI Bank recorded a momentum score of 53, indicating a neutral trend. The day RSI stood at 61.3, while the MACD remained above its signal and centre line, which is considered a bullish technical indicator.

In shareholding trends, mutual funds increased their holding from 29.62 per cent to 30.76 per cent in the September 2025 quarter, while foreign institutional investor holdings declined from 46.77 per cent to 45.56 per cent.

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Brokerage views on ICICI Bank

HSBC maintained a ‘buy’ rating on ICICI Bank, while cutting its target price to Rs 1,660 from Rs 1,680. Motilal Oswal maintained a ‘buy’ rating on ICICI Bank with a target price of Rs 1,700.

HDFC Bank Metrics

HDFC Bank settled at Rs 937.25. The stock has delivered a one-year return of 13.2 per cent and a five-year return of 26.6 per cent. Its market capitalisation stood at around Rs 14.4 lakh crore.

Trendlyne assigned HDFC Bank a durability score of 60, indicating high financial strength, though lower than ICICI Bank. The stock ranked among the top private lenders on long-term consistency metrics.

HDFC Bank’s valuation score stood at 43, placing it in the mid-valuation zone. Trendlyne data showed the stock has spent 33.7 per cent of the time below its current P/E multiple of 19.9, categorising it in the P/E buy zone.

The momentum score for HDFC Bank was 46, indicating a neutral technical trend. The day RSI stood at 25.6 and the MFI at 20.3, both in the oversold zone, while the MACD remained below its signal line.

Mutual fund holding in HDFC Bank increased from 26.02 per cent to 26.66 per cent in the December 2025 quarter, while FII holding declined from 48.38 per cent to 47.67 per cent.

Brokerage views on HDFC Bank

CLSA maintained an ‘accumulate’ rating on HDFC Bank and raised its target price to Rs 1,200 from Rs 575. The brokerage said it believes most concerns around the stock are either misconceived or temporary.

CLSA added that FY27 is likely to be a recovery year for the bank and noted that the stock is trading at a 10–12 per cent discount to ICICI Bank.

HSBC also maintained a ‘buy’ rating on HDFC Bank and raised its target price to Rs 1,110 from Rs 575. MOFSL retained a ‘buy’ rating on HDFC Bank with a target price of Rs 1,175.