Written by: ET Now Digital
Updated Jan 23, 2024 | 08:42 PM IST
HDFC Bank Share Price Target 2024: HDFC Bank share price declined to touch its 52-week low of Rs 1,425 on Tuesday’s (January 23) trading session extending their post-Q3 earnings slump.
HDFC Bank Share Price Target 2024: HDFC Bank share price declined to touch its 52-week low of Rs 1,425 on Tuesday’s (January 23) trading session extending their post-Q3 earnings slump. The shares of India’s largest private lender ended at Rs 1427.60, plunging 3.45% or Rs 51.05.
HDFC Bank reported a 34% jump in its standalone net profit to Rs 16,373 crore for the third quarter ended December 2023. The bank had earned a net profit of Rs 12,259 crore in the corresponding quarter of the previous fiscal year. Despite the increase in net profit, investors were not impressed with the outlook on loan growth and margins.
Amid the Q3 earnings announcement, here’s a look at what the brokerages say about the share of HDFC Bank.
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HDFC Bank Share Price Target 2024: What do brokerages say?
Brokerage firm Motilal Oswal has given a BUY rating on the stock with a price target of Rs 1950.
The brokerage company said that HDFC Bank reported in-line earnings led by healthy other income and steady loan growth. “Margins stood largely flat (slightly below our expectations) even as the bank deployed excess liquidity and significantly drew down the LCR ratio. Loan growth was healthy driven by growth in retail and continued traction in Commercial and Rural banking. Asset quality ratios improved while PCR also inched up to ~75%. The bank has continued to maintain 0.6% buffer of floating + contingent provisions, which provides additional comfort,” said
“Management suggested that NIMs will improve gradually over the coming years, which along with an improvement in operating leverage will enable the bank to deliver healthy return ratios,” it stated.
We estimate HDFCB to deliver faster deposit growth at 19% CAGR while loan growth to sustain at 17% CAGR over FY24-26. We thus estimate HDFCB to deliver an FY26E RoA/RoE of 1.9%/16.7%, added Motilal Oswal.
Sharekhan has maintained a BUY rating for HDFC Bank stock with a share price target of Rs 1,900.
“We believe loan growth is expected to be in the low mid-teens in the near term and deposit growth should outpace loan growth by 300-400 bps, which should bring the CD ratio to a normalised level gradually,” said Sharekhan.
“We retain our Buy rating on the stock with an unchanged price target (TP) of Rs 1,900, as valuations are reasonable and have priced in all the barring factors that could weigh down the earnings trajectory of the merged entity. Key monitorable remains NIM progression and retail deposit mobilisation,” it added.
Brokerage firm Jefferies cut the target price of HDFC Bank shares to Rs 2,000 per share from Rs 2100. The brokerage firm maintained a ‘BUY’ rating for the banking stock.
HDFC Bank Share Price History
HDFC Bank boasts a market cap of Rs 11.29 lakh crore. The private sector bank is a constituent of S&P BSE SENSEX on the BSE. According to BSE Analytics, the stock price of HDFC Bank fell 14.55 per cent in the last one month while the stock declined 5.19 per cent in the last three months, 14.81 per cent in six months, 14.65 per cent in the last one year, and 6.12 per cent in the last two years as of January 23, 2024.
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