HDFC Bank shares climb 17% in 6 months; can this 3rd most-valued firm on D-St rise further?

Shares of private lender HDFC Bank Ltd rose 1.80 per cent in Wednesday's trade to hit a day-high value of Rs 1,698.80. The stock was last seen trading 1.61 per cent higher at Rs 1,695.55. At this price, it has risen 17.24 per cent in the past six months.

In contrast, the scrip's performance has been dismal on a year-to-date (YTD) basis. HDFC Bank has shed 0.30 per cent as against a 14.80 per cent rise in benchmark BSE Sensex during the calendar year 2024 so far.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said HDFC Bank has been one of the strong investing propositions for moderate and less-risk appetite investors.

"One can continue to hold and buy on dips for the long term. The merger yields between HDFC Bank and HDFC are yet to manifest. So, investors can continue to hold their positions," Bathini added. Housing Development Finance Corporation (HDFC) was merged with HDFC Bank in July last year.

Technically, the counter is looking 'bullish' on charts. Support could be seen in the Rs 1,680-1,620 range. And, a decisive close above Rs 1,700 level can trigger more upside.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "HDFC Bank has seen a significant move after forming a strong base around the Rs 1,640-1,620 zone. A sustainable move beyond Rs 1,700 mark is highly anticipated to propel the counter towards the lifetime high zone of Rs 1,760, followed by Rs 1,800 in the comparable period. While on the lower end, the consolidation phase of Rs 1,640-1,620 is likely to cushion any short-term blips in the counter."

Sebi-registered research analyst AR Ramachandran said, "The stock is bullish on daily charts with strong support at Rs 1,671. A daily close above resistance of Rs 1,685 could lead to an upside target of Rs 1,760 in the near term."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 1,680 and resistance at Rs 1,700. A decisive close above Rs 1,700 level may trigger a further upside towards Rs 1,730. The expected trading range will be between Rs 1,665 and Rs 1,730 for the short term."

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 67.94. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the lender's stock has a price-to-equity (P/E) ratio of 19.52 against a price-to-book (P/B) value of 2.90. Earnings per share (EPS) stood at 85.48 with a return on equity (RoE) of 14.86.

HDFC Bank is the third-largest valued company on Dalal Street (D-St) preceded by Tata Consultancy Services (TCS) Ltd and Reliance Industries Ltd (RIL).