HDFC Bank shares rebound 12% from 52-week low; here are fresh price targets

Shares of HDFC Bank have rebounded 12% from their 52-week low hit on February 14 this year.  Sentiment turned weak around the HDFC Bank stock in February this year after the lender announced its earnings for the quarter ended December 2023. The stock fell to a 52 week low of Rs 1363.45 on February 14, 2024.  In the current session, the HDFC Bank shares hit an intraday high of Rs 1525.10 on BSE, recovering 11.84% from their 52-week low. 

However, shares of the private lender are still down 11.03% this year and fallen nearly 10% in a year.  

At 10:28 am, the HDFC Bank stock was trading flat at Rs 1513.80 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 55.4.

Market cap of HDFC Bank rose to Rs 11.49 lakh crore amid a rally in the broader market.

Total 1.66 lakh shares of the firm changed hands amounting to a turnover of Rs 25.21 crore on BSE. HDFC Bank stock has a one-year beta of 0.7. This signals the stock has low volatility. 

The large cap stock is trading higher than the 5 day, 20 day, 30 day and 50 day but lower than the 100 day, 150 day and 200 day moving averages.

BNP Paribas has a price target of Rs 2410 on the bank post Q4 earnings.

“Valuation, at 2.1xFY25E P/B, do better justice to a wholesale 14% RoE bank and not to India’s premium retail bank, for which we expect RoE to mean revert to 17%. We think many of the fears are overdone, as highlighted in ‘Sum of all fears’, and provide an attractive buying opportunity,” said the brokerage.

YES Securities has a target price of Rs 1850 on the banking stock.

“We maintain a recently-assigned BUY rating with an unchanged price target of Rs 1850: We value the standalone bank at 2.2x FY26 P/BV for an FY25E/26E RoE profile of 16.9/14.6/15.9%. We assign a value of Rs 216 per share to the subsidiaries, on SOTP,” said the brokerage.

LKP Securities has assigned a price target of Rs 1756 on the banking stock.

"We expect a marginal reduction in ROA/ROE for FY26E owing to higher C/I ratio and margin pressure. Therefore, adjusted the P/BVPS multiple. Nevertheless, we believe, superior underwriting practices, adequate coverage and strong capital position makes the bank well placed and thus, we recommend BUY with price target of Rs 1,756."

HDFC Bank logged a 37.05 per cent rise in its standalone net profit to Rs 16,511.85 crore for January-March quarter. Net interest income (interest earned less interest expended) during the quarter recorded a 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.