private sector HDFC Bank The stock may see further rise of up to 38 percent. Such estimates have been obtained from the target prices revealed by brokerages after the release of financial results for the October-December 2024 quarter. Brokerage Macquarie has given a target price of Rs 2,300 per share for HDFC Bank shares. This is 38 percent more than the previous closing price. Also issued ‘outperform’ call. The performance of Q3FY25 is described as good despite the challenging macroeconomic environment.
CLSA has issued a ‘hold’ call for the stock with a target price of Rs 1,785 per share. It has also been said that a steady growth in bank deposits was seen in the third quarter of the financial year 2025 i.e. October-December 2024. The new target price is 7 percent more than the closing price of HDFC Bank shares on January 22.
CLSA said loan growth has moderated, with net interest margins (NIM) and asset quality remaining largely stable. CLSA expects the bank’s loan-to-deposit ratio (LDR) to reach 90% only by FY2027. The bank has reduced this by 98% in the December 2024 quarter.
HDFC Bank’s profit increased by 2 percent
HDFC Bank’s consolidated net profit for the December 2024 quarter increased by 2.3 percent year-on-year to Rs 17,657 crore. Net profit on standalone basis increased by 2 percent to Rs 16,735.50 crore. A year ago, the bank’s net profit was Rs 17,258 crore on consolidated basis and Rs 16,372.54 crore on standalone basis.
The bank’s total income on standalone basis increased to Rs 87,460 crore in the December quarter, from Rs 81,720 crore in the same quarter a year ago. Total consolidated income declined to Rs 1,12,194 crore from Rs 1,15,016 crore in the October-December 2023 quarter.
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Gross NPAs came down to 1.42 percent of total loans by the end of December 2024, which was 1.26 percent in the same quarter a year ago. Net NPAs increased to 0.46 percent from 0.31 percent at the end of December 2023.
What is the stance of HSBC and Bernstein?
HSBC has ‘buy’ rating on the stock, but reduced the target price to Rs 1,980 per share from Rs 2,130 earlier. Bernstein has given ‘outperform’ rating with a target of Rs 2,300 per share. There is a slight rise in the shares of HDFC Bank on 23 January.
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