Following the bank’s January 16 announcement of earnings for the quarter ending in December 2023, the stock dropped 10% last week. Shares of HDFC Bank are currently trading below the 200-day, 150-day, 100-day, and 5-day moving averages.
Despite a surge in the market, HDFC Bank’s market capitalization decreased to Rs 11.12 lakh crore. HDFC Bank shares broke the 52-week low of Rs. 1460.55, which was reached on October 26, 2023. Shares of private sector lender HDFC Bank Ltd. extended their losses to a 52-week low in early trade today following Q3 earnings last week. After closing at Rs. 1478.65 on the BSE earlier, HDFC Bank shares dropped 1.26% to reach its annual low of Rs. 1459.95. With HDFC Bank’s relative strength index (RSI) at 24.5, the banking stock is trading in the oversold area.
Following the bank’s January 16 announcement of earnings for the quarter ending in December 2023, the stock dropped 10% last week. A total of 1.04 lakh of the company’s shares were traded, generating a BSE turnover of Rs 15.18 crore. The stock of HDFC Bank has a 0.5 one-year beta. This suggests that the stock is not very volatile. The big-cap stock is currently trading below the 200-day, 150-day, 100-day, and 5-day moving averages.
Many investors are uneasy after the large fall in the heavyweight banking sector following Q3 earnings, which was not anticipated. Here is an outlook for the stock in light of the current drop.
With a target price of Rs 2,025 per share, global brokerage CLSA has maintained its buy recommendation on the counter. Following the Q3 earnings, the brokerage has dealt with more than twenty clients. However, deposits and NIM, or net interest margins, were the main causes for concern. The banks stock has a target price of Rs 1950, according to brokerage KR Choksey.
The Bank’s subsidiaries are valued at Rs 233 and its standalone company at 2.2 times FY26E P/ABV, which adds up to a total value of Rs 1,950 (formerly Rs 2,060 per share), suggesting a 26.8% increase over the current price. We hence keep our “BUY” rating on HDFC Bank’s shares, the statement read.
In comparison to the same quarter in the previous fiscal year, when it was Rs 12,259 crore, HDFC Bank recorded a 34% increase in its standalone net profit to Rs 16,373 crore for the third quarter that concluded in December 2023.
In the October–December quarter of FY24, total income increased to Rs 81,720 crore from Rs 51,208 crore during the same period the previous year.
