HDFC Bank Q4 results beats estimates: Should you buy, sell or hold?
HDFC Bank Q4 Results, HDFC Bank target price: Jefferies has given the most optimistic target at Rs 2,340- implying 23 per cent potential gains for the counter.
)
08:38 AM IST
HDFC Bank Q4 Results, HDFC Bank target price: HDFC Bank shares will gain largely positive traction in Monday's trade (April 21) as most brokerages remain positive on the stock after strong operating profit in the March quarter results. The lender for the quarter ending March reported standalone profit at Rs 17,616 crore, up 6.6 per cent year-on-year. Zee Business research projected the same at Rs 17,030 crore.
Meanwhile, the net interest income or NII at the lender also grew 10.3 per cent to Rs 32065.8 crore as against Rs 29,076 crore. The same was estimated at Rs 30,760 crore for the March quarter.
Also, asset quality at the lender also showed improvement with net non performing assets at 0.43 per cent in comparison to 0.46 per cent in the previous December quarter.
Furthermore, net interest margin or NIM came in at a 7-quarter high at 3.54 per cent.
On a brighter note, provisions at the lender reduced 76.4 per cent on-year to Rs 3,193 crore, while it increased 1.24 per cent on a sequential note.
Furthermore, while the deposit growth at the lender came in at 15.8 per cent for the March quarter, while loan growth was recorded at 5.4 per cent.
After the lender's Q4 performance, HDFC Bank's ADR or American Depository Receipt closed over 4 per cent higher.
Brokerage calls on HDFC Bank post Q4FY25 earnings
Importantly, the stock ahead of its results closed at a record high and now most global brokerages have upgraded the stock post the lender's Q4 results. Now we look at the individual calls by different brokerages:
Jefferies has maintained its buy call with the target raised to Rs 2,340 from 2,120. The brokerage pointed that the private sector lender's profit of Rs 17,600 crore, up 7 per cent YoY, ahead of estimates with pick-up in loan growth to 5 per cent & improved margins Better cross-sells & stable credit costs will aid core profits, but rate cuts will have interim drag on NIMs, it added.
Macquarie on HDFC Bank has maintained outperform with the target at Rs 2,300. As per the brokerage, HDFC Bank's Q4 PAT was largely in-line, with lower other income offset by higher margins
The brokerage has continued with its stance given the potential for return on assets or ROA improvement over the next two years driven by NIM expansion.
Hong Kong-based global brokerage CLSA has upgraded the stock to 'accumulate' from 'hold' with the target price raised to Rs 2,200 from Rs 1,785. The brokerage said the bank posted decent performance during the March quarter. Also, it noted that the bank finally picked-up loan growth (4 per cent QoQ) & reiterated its intention to grow at least in line with market in FY26. The brokerage has incorporated a cumulative 75bp repo rate cut & trim PAT est. 2%-3%
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
HDFC Bank says ‘frivolous’ FIR filed against its MD & CEO Sashidhar Jagdishan by loan defaulter
HDFC Credit Card Lounge Access Changes: New charges apply to rent, gaming, and reward limits
ICICI and HDFC Bank cut FD interest rates again; check latest rates effective May 2025
Pre Market Setup (May 16): GIFT Nifty futures rise nearly 100 pts; markets likely open in green
New ATM Transaction Rules: RBI issues revised framework for ATM transaction charges; 5 key changes to know
