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HDFC Bank: Shares slipped after results, but may get 37% return, check target price of brokerage


After the quarterly results, brokerage house HDFC Bank is looking bullish about the stock. He expects an upside of 37 percent in this.

Buy or Sell or Hold HDFC Bank Stocks: Weakness is being seen in the shares of HDFC Bank today. The stock weakened by about 3 percent to Rs 1414, while on Wednesday last week it closed at Rs 1465. Last week the bank released its March quarter results. The bank’s profit had grown by 23 per cent year-on-year, but the net interest margin remained weaker than expected. However, after the quarterly results, brokerage houses are looking bullish on the stock. If we look at the target price of different brokerage houses, then it can give 37 percent return from the current price.

Consistent strength in business

Brokerage house Motilal Oswal has given a target of Rs 1850 while advising to buy in the stock. It is 26 per cent higher than last week’s closing price of Rs 1,465. The brokerage house says that HDFC Bank’s business is showing steady strength and the market share is increasing in its sector. While there is steady momentum in the retail segment, there is strong growth in commercial and rural banking as well. There is also a pickup in wholesale loans. However, NII and PPoP growth has been moderate due to lower margins.

asset quality improvement

According to the brokerage, the asset quality of the bank has improved, while the restructuring book remained moderate at 1.14 percent of the total loan. Asset quality is getting comfort due to healthy PCR and Consistent Provisions Buffer. Brokerage estimates that HDFC Bank may have 20% PAT CAGR during FY22-24. Whereas in FY24, RoA/RoE is estimated to be 2.1%/17.8%.

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Global Brokerages Are Also Bullish

Bank of America has given a buy advice in the stock and has given a target of Rs 1900. On the other hand, brokerage house Macquarie has given outperform rating in the stock and has given a target of Rs 2005. If we look at Macquarie’s target, it is 37 percent more than the current price. While Nomura has given a buying advice, but the target has been reduced from the earlier Rs 1955 to Rs 1705.

HDFC Bank: Results at a Glance

HDFC Bank’s standalone profit grew nearly 23 per cent year-on-year to Rs 10,055.2 crore. According to regulatory filings, after paying tax of Rs 2989.5 crore in the March 2022 quarter, the bank had a net profit of more than Rs 10,000 crore. The income of the bank stood at Rs 41,085.78 crore. Net revenue (net interest income and other income) grew 7.3 per cent to Rs 26,509.80 crore. The GNPA of the bank decreased to 1.17 percent and Net NPA was 0.32 percent.

(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of Markets are risky, so take expert opinion before investing.)



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