HDFC Bank Stock Price:Today, there is weakness in the shares of HDFC Bank, the largest private sector bank in India. results (HDFC Bank Results)After this, today the share has fallen by about 1 percent to the price of Rs 1514. HDFC Bank’s profits (HDFC Bank ProfitOn a quarterly basis, it increased by 2.11 percent to Rs 17622.38 crore in the March quarter. Whereas in the December quarter of the last financial year, the company’s profit was Rs 17,257.87 crore. The bank’s consolidated profit has increased by 0.9 percent on quarterly basis. Interest income increased to Rs 29,080 crore, while other income increased to Rs 18,170 crore. After the results, most of the leading brokerage houses invested in bank shares (Buy HDFC BankIs advised.
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HDFC Bank: Brokerage Rating and Target Price
Motilal Oswal
Rating: BUY
Target price: Rs 1950
ICICI Securities
Rating: BUY
Target price: Rs 1850
Religare Broking
Rating: BUY
Target price: Rs 2010
Antique Broking
Rating: BUY
Target price: Rs 1850
LKP Research
Rating: Buy
Target price: Rs 1756
sharekhan
Rating: Buy
Target price: Rs 1900
Jefferies
Rating: Buy
Target price: Rs 1880
Nuwama
Rating: Buy
Target price: Rs 1760
Phillip Capital
Rating: Buy
Target price: Rs 1800
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Brokerage House Motilal Oswal Says that the March quarter has been healthy for HDFC Bank and the net interest margin has improved by 4bp QoQ. CD ratio has fallen by 6% QoQ to 104%. Both PAT and net interest income have been as per estimates. The bank prudently deployed stake sale gains from Credila (Rs 73.4 billion) and tax credits to further strengthen the balance sheet as it made floating provisions of Rs 10900 crore during the quarter.
As soon as the bank made a provision of Rs 1500 crore for ex-gratia provisions for employees, there was a surge in OPEX. However, the adjusted C/I ratio was 41.3%. The GNPA ratio improved by 2bp QoQ to 1.2%, while the PCR was largely stable at 74%. Fresh slippages increased marginally to Rs 7300 crore or 1.2% of the loan. According to the brokerage, the bank’s loans and deposits may see 13.5% and 18% CAGR by FY24-26, while earnings may see 16% CAGR. Which means that RoA and RoE are expected to be 1.9% and 15.5% by FY26.
Brokerage House ICICI Securities Says net interest margin for HDFC Bank in Q4FY24 was slightly better than expected, partly driven by seasonality. The brokerage has cut its EPS estimates for both FY25/26 by 5%, mainly due to the cut in growth estimates. The bank is estimated to deliver a healthy ROA of 1.7% with an ROE of 14-15% for FY 2015/26. The brokerage has maintained its target at Rs 1850. Due to sharp correction in the stock price (down 10% YTD), the brokerage has upgraded the stock to BUY. The re-rating is likely to be gradual, as despite strong deposit growth, credit growth is likely to be slightly slower than the system.
(Disclaimer: The advice to invest in stocks has been given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
