Indiabulls Securities has recommended a hold rating on HDFC Bank, with price target of Rs 1738, in its report dated November 9, 2009. The stock closed at Rs 1715.35 on November 12, 2009.

"We have valued HDFC Bank using the three-stage Discounted Equity Cash Flow model. Our model assumes a cost of equity of 16.16% and a terminal growth of 12.55% which results in a fair value estimate of Rs 1,738, indicating an upside of 2% over the CMP. Further, the Bank currently trades at a P/B of ~4.4x, which is in line with its historical average. We see limited potential upside from current levels and therefore, maintain the stock to Hold," says Indiabulls Securities Research report.