HDFC Bank Stock Price Surges on Impressive Q2 Results, Jefferies Hikes Target Price
The share of HDFC Bank opened higher and is trading with gains of more than 2% following the September quarter earnings, which appears to have sated the mood of investors and brokerages alike. The stock is currently trading at Rs 1015, which compares to Friday’s closing price of Rs 994. The stock has fallen 43% over a year-to-date period and over 40% in the last 12 months.
Q2 Results Exceed Expectations
The positive mood in HDFC Bank’s share price comes on the back of the lender’s September quarter earnings, where net profit rose 11% on a year-on-year basis to Rs 18,641 crore. A bigger positive for HDFC Bank was the improving asset quality and strong margin outlook, factors that were highlighted by Jefferies in its post-earnings note for the counter.
Key highlights from the Q2 results include:
- Profit up 10.8% to Rs 18,641 crore versus Rs 16,821 crore.
- Net interest income up 4.8% to Rs 31,552 crore versus Rs 30,114 crore.
- Provisions up 30% to Rs 3,501 crore versus Rs 2,700 crore.
- Gross NPA ratio down 16 bps to 1.24% versus 1.40% (QoQ).
- Net NPA ratio down 5 bps to 0.42% versus 0.47% (QoQ).
- Other income up 25% to Rs 14,350 crore versus Rs 11,483 crore
Jefferies Hikes Target Price
The brokerage firm even went on to maintain a ‘buy’ rating on HDFC Bank while hiking the target price from Rs 1,200 to Rs 1,240. The brokerage has also lifted HDFC Bank’s earnings estimates by 2-6%, adding that the lender remains one of its top picks in the sector.
To know more about the HDFC Bank Stock Price, you can visit our website.
Technical Analysis
HDFC Bank shares are currently trading at a relative strength index of 74, which suggests that the stock might be in an overbought territory. However, the strong Q2 results and the target price hike by Jefferies are likely to support the stock price in the near term.
For more information on Technical Analysis of Stocks, you can visit our website.
Investor Sentiment
The Q2 results of HDFC Bank have exceeded expectations, leading to a surge in investor sentiment. The strong margin outlook and improving asset quality are likely to support the stock price in the near term.
To know more about the Indian Stock Market News, you can visit our website.
Conclusion
In conclusion, the Q2 results of HDFC Bank have exceeded expectations, leading to a surge in stock price and a target price hike by Jefferies. The strong margin outlook and improving asset quality are likely to support the stock price in the near term. However, the stock might be in an overbought territory, and investors should exercise caution while making investment decisions.
For more information on Stock Market Tips and Advice, you can visit our website.