HDFC Bank shares: Check the new target price post Q1 earnings
HDFC Bank stock fell up to 1.60 per cent to Rs 1,342 against the previous close of Rs 1,363.85 on BSE.
- Jul 18, 2022,
- Updated Jul 18, 2022 1:17 PM IST
Shares of HDFC Bank were trading lower today after the private sector lender reported a 20.91 per cent rise in its June quarter net profit. HDFC Bank stock fell up to 1.60 per cent to Rs 1,342 against the previous close of Rs 1,363.85 on BSE. HDFC Bank shares are trading higher than 50-day moving averages but lower than 5-day, 20-day, 100-day and 200-day moving averages .
The large cap stock has lost 11.66 percent in a year and fallen 9.16 per cent in 2022. Total 9.62 lakh shares of the firm changed hands amounting to a turnover of Rs 130.65 crore on BSE. The market cap of the firm fell to Rs 7.46 lakh crore on BSE.
The stock hit a 52-week high of Rs 1,724.30 on October 18, 2021 and a 52-week low of Rs 1,271.75 on June 17,2022. The lender's net profit climbed 20.91 per cent to Rs 9,579.11 crore in the June quarter.
ALSO READ: HDFC-HDFC Bank merger gets PFRDA approval
On a standalone basis, the largest private sector lender's net profit rose 18.97 per cent to Rs 9,195.99 crore against Rs 7,729.64 crore in the year-ago period. However, profit fell 8.54 percent from Rs 10,055.18 crore in the preceding March quarter.
Total income rose to Rs 41,560 crore on a standalone basis against Rs 36,771 crore in the year-ago period.
Total expenses rose to Rs 26,192 crore from Rs 21,634 crore. Overall provisions in Q1 fell to Rs 3,187.73 crore against Rs 4,830.84 crore in the year-ago period, the bank said.
ALSO READ: HDFC Bank Q1 net profit jumps 21% to Rs 9,579 crore
Here's a look at what brokerages said about the prospects of the stock after Q1 earnings.
LKP Securities
HDFC Bank is expected to outperform the sector in long run led by healthy balance sheet growth, much higher provision then regulatory requirement in the balance sheet, best in class underwriting and risk management practices. Given these strengths, we expect HDFC Bank to remain one of the best among all the lending business. Thus, we continue to maintain BUY rating on the bank with a target price of Rs 1,709.
ICICI Securities
Treasury loss of Rs 1,300 crore and elevated operating expenses resulted in lower operating profit growth of mere 1.5% YoY (down 6% QoQ). However, operating profit excluding treasury grew 14.7 per cent YoY, up 1.7 per cent QoQ. The brokerage has given a target price of Rs 1,362 (earlier: Rs 1,955) and maintained a 'buy' call on the stock.
YES Securities
Slippages were somewhat elevated on the back of agri and restructured book slippages. Management commentary pointed to a turnaround in the share of retail loans finally starting to take root. We reiterate BUY rating on HDFC Bank with a revised price target of Rs 1,885.
Shares of HDFC Bank were trading lower today after the private sector lender reported a 20.91 per cent rise in its June quarter net profit. HDFC Bank stock fell up to 1.60 per cent to Rs 1,342 against the previous close of Rs 1,363.85 on BSE. HDFC Bank shares are trading higher than 50-day moving averages but lower than 5-day, 20-day, 100-day and 200-day moving averages .
The large cap stock has lost 11.66 percent in a year and fallen 9.16 per cent in 2022. Total 9.62 lakh shares of the firm changed hands amounting to a turnover of Rs 130.65 crore on BSE. The market cap of the firm fell to Rs 7.46 lakh crore on BSE.
The stock hit a 52-week high of Rs 1,724.30 on October 18, 2021 and a 52-week low of Rs 1,271.75 on June 17,2022. The lender's net profit climbed 20.91 per cent to Rs 9,579.11 crore in the June quarter.
ALSO READ: HDFC-HDFC Bank merger gets PFRDA approval
On a standalone basis, the largest private sector lender's net profit rose 18.97 per cent to Rs 9,195.99 crore against Rs 7,729.64 crore in the year-ago period. However, profit fell 8.54 percent from Rs 10,055.18 crore in the preceding March quarter.
Total income rose to Rs 41,560 crore on a standalone basis against Rs 36,771 crore in the year-ago period.
Total expenses rose to Rs 26,192 crore from Rs 21,634 crore. Overall provisions in Q1 fell to Rs 3,187.73 crore against Rs 4,830.84 crore in the year-ago period, the bank said.
ALSO READ: HDFC Bank Q1 net profit jumps 21% to Rs 9,579 crore
Here's a look at what brokerages said about the prospects of the stock after Q1 earnings.
LKP Securities
HDFC Bank is expected to outperform the sector in long run led by healthy balance sheet growth, much higher provision then regulatory requirement in the balance sheet, best in class underwriting and risk management practices. Given these strengths, we expect HDFC Bank to remain one of the best among all the lending business. Thus, we continue to maintain BUY rating on the bank with a target price of Rs 1,709.
ICICI Securities
Treasury loss of Rs 1,300 crore and elevated operating expenses resulted in lower operating profit growth of mere 1.5% YoY (down 6% QoQ). However, operating profit excluding treasury grew 14.7 per cent YoY, up 1.7 per cent QoQ. The brokerage has given a target price of Rs 1,362 (earlier: Rs 1,955) and maintained a 'buy' call on the stock.
YES Securities
Slippages were somewhat elevated on the back of agri and restructured book slippages. Management commentary pointed to a turnaround in the share of retail loans finally starting to take root. We reiterate BUY rating on HDFC Bank with a revised price target of Rs 1,885.