HDFC Bank Stock Price:
The private sector leading bank HDFC Bank shares are seeing a boom today. Today, the stock gained almost 1.5 per cent in intraday and reached Rs 1621. At the same time, it closed at Rs 1601 on Friday.
The bank presented the financial results for the December quarter on Saturday, which the market liked.
If the bank’s profit has increased by 19 per cent, then the asset quality has also improved.
After the results, brokerage houses advise buying this stock in the banking sector. The stock has gained 6% in 1 year and 65% in 5 years.
Result as expected
Motilal Oswal’s brokerage house advised buying HDFC Bank shares with a target of Rs 1930. Regarding the current Rs 1600, a 21% return is possible.
The brokerage house says that HDFC Bank’s quarterly results have been in line with estimates. There has been growth in core PPoP and NII.
The margin remains stable. Loan growth has been strong on the back of a boost from the retail segment. Good growth has been seen in commercial and rural banking.
You can get a 26 per cent return
Brokerage house JM Financial has advised investing in HDFC Bank with a target of Rs 1840, while Yes Securities has advised buying with a target of Rs 2020.
Brokerage house ICICI Securities has recommended investing in the stock with a target of Rs 1,601. If you look at the target of Rs 2020 here, you can get a 26% return on the stock.
Bank’s profit will remain in future also
Brokerage house Motilal Oswal says that the bank’s asset quality is improving, and the restructuring book has been moderated. PCR is healthy, and the provisioning buffer supports asset quality.
The brokerage believes that the bank will see a CAGR growth of 19 per cent in PAT during FY22-25. At the same time, RoA/RoE can be 2%/17.7% in FY25.
19% increase in profit in the December quarter
HDFC Bank’s profit increased by 18.5 per cent to Rs 12,259.5 crore in the quarter ending December 2022.
At the same time, the bank’s profit in the same quarter of the previous financial year was Rs 10,342.2 crore.
A jump of 25 per cent has been recorded in the bank’s Net Interest Income (NII). During this period, income on a standalone basis has increased from Rs 40,651.60 crore to Rs 51,207.61 crore annually.
Improvement in asset quality of the bank
In terms of asset quality, HDFC Bank’s Gross Non-Performing Assets (NPA) remained stable at 1.23 per cent without any change every quarter in the December quarter of the current financial year.
Net NPA also decreased from 0.37 per cent to 0.33 per cent. Provision and contingencies stood at Rs 2,806.4 crore.
In comparison, the bank’s provision and contingencies stood at Rs 2,994 crore in the same quarter a year ago.
The bank’s core net interest margin stood at 4.1 per cent on total assets and 4.3 per cent on interest-earning assets.
