HDFC Bank shares gave negative returns in 2024, here are fresh price targets
HDFC Bank shares ended 1.05% higher at Rs 1597.45 on Friday. Market cap of HDFC Bank rose to Rs 12.14 lakh crore amid a rally in the broader market.
- Jun 17, 2024,
- Updated Jun 17, 2024 3:24 PM IST
Shares of HDFC Bank have given negative returns in 2024. The stock is down 6.07% compared to a 3.54% rise for Nifty Bank during the same period. On the other hand, the private lender’s peers ICICI Bank and Axis Bank have risen 10.45% and 7.5% during the period. However, Kotak Mahindra Bank and IndusInd Bank shares have fallen 10.15% and 6.04%, respectively this year. The stock is on a recovery path since the lender announced its earnings for the quarter ended December 2023 in February 2024. The stock slipped to a 52-week low of Rs 1363.45 on February 14, 2024. Since then, the stock of the country’s largest private bank has risen 17.16%.
On Friday, HDFC Bank shares ended 1.05% higher at Rs 1597.45 on BSE. The banking stock is trading neither in the oversold territory nor in the overbought zone as the relative strength index (RSI) of HDFC Bank stands at 63.6.
Market cap of HDFC Bank rose to Rs 12.14 lakh crore amid a rally in the broader market.
Total 19.55 lakh shares of the firm changed hands amounting to a turnover of Rs 311.88 crore on BSE. HDFC Bank stock has a one-year beta of 0.9. This signals the stock has low volatility.
The large cap stock stands higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Incred Equities has assigned a price target of Rs 2,000 and given an add rating to the stock.
“We believe HDFC Bank will continue to maintain its leadership position in retail lending and further strengthen its retail liability franchise in the mid- to long-term. We expect HDFC Bank to be a 2% RoA and 17% return on equity story. HDFC Bank is our high-conviction ADDrated stock with a target price of Rs 2,000. We have valued the standalone bank at 2.4 times FY26F BV and its subsidiaries at Rs 250/share. Slow growth and weak margins are key downside risks to our thesis, said the brokerage.
Brokerage Systematix has a price target of Rs 1885 on the HDFC Bank stock.
Axis Securities has a price target of Rs 1685 on the banking stock.
“The management has identified levers to steer growth for HDFC Bank over the medium-long term. These include (a) Focus on improving profitability metrics – RoA and EPS, (b) Ensuring sustainable deposit growth alongside delivering strong growth in the retail deposit franchise, (c) Investing in distribution, workforce and technology/digital infrastructure and (d) Unabated focus on quality with a balance between margins and risk. Given HDFC Bank’s track record of delivering a strong and consistent performance across cycles, we remain confident in the bank’s ability to deliver robust performance over the medium term. D. Recommendation: We recommend a BUY on the stock with a TP of Rs 1,685/share,” said the brokerage.
HDFC Bank reported a 37.05 per cent rise in its standalone net profit to Rs 16,511.85 crore in Q4 of the last fiscal. Net interest income (interest earned less interest expended) during the quarter climbed 24.51 percent growth at Rs 29,076.82 crore from Rs 23,351.83 crore a year ago. Core net interest margin stood at 3.44 percent on total assets, and 3.63 percent based on interest earning assets.
Shares of HDFC Bank have given negative returns in 2024. The stock is down 6.07% compared to a 3.54% rise for Nifty Bank during the same period. On the other hand, the private lender’s peers ICICI Bank and Axis Bank have risen 10.45% and 7.5% during the period. However, Kotak Mahindra Bank and IndusInd Bank shares have fallen 10.15% and 6.04%, respectively this year. The stock is on a recovery path since the lender announced its earnings for the quarter ended December 2023 in February 2024. The stock slipped to a 52-week low of Rs 1363.45 on February 14, 2024. Since then, the stock of the country’s largest private bank has risen 17.16%.
On Friday, HDFC Bank shares ended 1.05% higher at Rs 1597.45 on BSE. The banking stock is trading neither in the oversold territory nor in the overbought zone as the relative strength index (RSI) of HDFC Bank stands at 63.6.
Market cap of HDFC Bank rose to Rs 12.14 lakh crore amid a rally in the broader market.
Total 19.55 lakh shares of the firm changed hands amounting to a turnover of Rs 311.88 crore on BSE. HDFC Bank stock has a one-year beta of 0.9. This signals the stock has low volatility.
The large cap stock stands higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Incred Equities has assigned a price target of Rs 2,000 and given an add rating to the stock.
“We believe HDFC Bank will continue to maintain its leadership position in retail lending and further strengthen its retail liability franchise in the mid- to long-term. We expect HDFC Bank to be a 2% RoA and 17% return on equity story. HDFC Bank is our high-conviction ADDrated stock with a target price of Rs 2,000. We have valued the standalone bank at 2.4 times FY26F BV and its subsidiaries at Rs 250/share. Slow growth and weak margins are key downside risks to our thesis, said the brokerage.
Brokerage Systematix has a price target of Rs 1885 on the HDFC Bank stock.
Axis Securities has a price target of Rs 1685 on the banking stock.
“The management has identified levers to steer growth for HDFC Bank over the medium-long term. These include (a) Focus on improving profitability metrics – RoA and EPS, (b) Ensuring sustainable deposit growth alongside delivering strong growth in the retail deposit franchise, (c) Investing in distribution, workforce and technology/digital infrastructure and (d) Unabated focus on quality with a balance between margins and risk. Given HDFC Bank’s track record of delivering a strong and consistent performance across cycles, we remain confident in the bank’s ability to deliver robust performance over the medium term. D. Recommendation: We recommend a BUY on the stock with a TP of Rs 1,685/share,” said the brokerage.
HDFC Bank reported a 37.05 per cent rise in its standalone net profit to Rs 16,511.85 crore in Q4 of the last fiscal. Net interest income (interest earned less interest expended) during the quarter climbed 24.51 percent growth at Rs 29,076.82 crore from Rs 23,351.83 crore a year ago. Core net interest margin stood at 3.44 percent on total assets, and 3.63 percent based on interest earning assets.