HDFC Bank shares at all-time high ahead of Q4 results; will this upmove continue?

Shares of HDFC Bank Ltd moved up 2.21 per cent on Thursday to hit a record high of Rs 1,919.35, taking their strong upward move to the fourth straight session. The stock eventually settled 1.53 per cent higher at Rs 1,906.55. At this closing value, it has climbed 7.98 per cent in four trading days.

The country's largest private lender is scheduled to announce its fourth quarter (Q4 FY25) results on April 19, 2025 (Saturday). Usually, the bank declares its financial results in the afternoon. BNP Paribas said large-cap private banks are back in the focus and HDFC Bank as an idea perhaps saw the biggest change in receptivity among investors since its last visit.

Recently, the lender has lowered its savings account interest rate by 25 basis points (bps). Before this, HDFC Bank cut fixed deposit (FD) rates for longer tenures. These updates came shortly after the Reserve Bank of India (RBI) announced its second consecutive benchmark repo rate cut for the year, which currently stands at 6 per cent.

A few market experts also suggested that the counter looked positive on charts and may see a 10-15 per cent uptick in the medium- to short-term.

"For HDFC bank, with the RBI rate cut, its cost of funding may come down incrementally, which has been a concern for the stock for a long time. So, I think that this is the beginning of the HDFC Bank revival," Chakri Lokapriya, CIO - Equities at LGT Wealth, told Business Today.

HDFC Bank is undoubtedly looking interesting on charts and expected upside targets will be Rs 2,000-2,050, said Sebi-registered analyst Mitesh Panchal, adding that the counter can see a 10-15 per cent upside from hereon in the next 6 to 9 months.

"We've seen deposit rate cut by HDFC Bank but there's no announcement on the lending rate so far. This is going to help the lender in terms of collection efficiency, which has likely improved a bit in March 2025," said Dharmesh Kant, Head of Equity Research at Cholamandalam Securities.

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 70.02. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 22.02 against a price-to-book (P/B) value of 3.17. Earnings per share (EPS) stood at 86.57 with a return on equity (RoE) of 14.39. According to Trendlyne data, HDFC Bank has a one-year beta of 0.9, indicating low volatility.

Meanwhile, Indian equity benchmarks will remain closed today on the account of Good Friday. Trading will resume on Monday (April 21) at usual hours. The 30-share BSE Sensex pack zoomed 1,509 points or 1.96 per cent to close at 78,553 on Thursday and the broader NSE Nifty index surged 414 points or 1.77 per cent to end at 23,852.