HDFC Bank shares hit 52-week lows over consecutive sessions while analysts scream Buy. Has the stock hit its bottom?

HDFC Bank shares have reached their lowest levels in 52 weeks over multiple days, despite analysts persistently recommending a 'Buy' rating for the stock. Throughout 2026, HDFC Bank's shares have plummeted by 29%, marking a significant 33% decline in under 11 months. The stock's price fell to Rs 681.90 per share on Friday, showcasing a dramatic decline from its record high of Rs 1,020.50 in October last year.

The sharp selloff began in March this year following the resignation of the bank's former part-time chairman, Atanu Chakraborty, who cited personal values and ethics as the reason for his departure. This governance issue initially triggered a massive sell-off, but it later stabilized after the bank implemented leadership changes.

The bank's board has now submitted two candidates to the Reserve Bank of India (RBI) for the position of CEO, officially commencing the succession process for CEO Sashidhar Jagdishan, who is set to retire later this year. While several brokerage firms, including Goldman Sachs, Nomura, and Motilal Oswal Financial Services, have given 'Buy' ratings to HDFC Bank, citing strong valuations and margin improvements, analysts have expressed concerns about the stock's technical setup and long-term trend.

They note that the bank continues to underperform relative to other banking stocks and has shown weak performance over the past three to five years. Despite these technical challenges, analysts suggest that a near-term recovery is possible, albeit uncertain, and that operational improvements and growth indicators may help the stock regain its footing in the medium term.