In intraday trading, the bank’s stock gained more than 2 percent to reach a price of Rs 1,435. Whereas on Friday it closed at Rs 1397.
HDFC Bank Stock Price: Today i.e. in the business of March 14, there has been a great rise in the shares of HDFC Bank. In intraday trading, the bank’s stock gained more than 2 percent to reach a price of Rs 1,435. Whereas on Friday it closed at Rs 1397. In fact, the Reserve Bank of India (RBI) has removed the restrictions on the activities of HDFC Bank to do new digital business. After this relief, today the sentiment of the investors regarding the private bank has improved. Brokerage houses are also looking bullish on the stock. The brokerage house believes that after this relief, the concerns of investors about the digital capabilities of the bank will be reduced. The business momentum of the bank is also strong. The focus of the bank will be on Net Interest Income (NII) and loan growth going forward.
Business will get stronger
Brokerage house Motilal Oswal says that as of now, HDFC Bank’s stock has been an underperformer compared to Pierce. But now after the relief on digital business from the Reserve Bank, the trend will be better. Due to the strength in the retail business and commercial business, it is expected that the overall business of the bank will be better. The brokerage estimates that PAT will be 18% CAGR in FY22-24. Whereas in FY24E, RoA/RoE is estimated to be 2.0 percent and 17.5 percent. While recommending investment in the stock, the brokerage house has given a target of Rs 2000. In terms of current price of Rs 1397, it can give 43 percent return.
digital business will grow
Brokerage house Morgan Stanley has given investment advice in the stock. Giving the stock an overweight rating, the target has been kept at Rs 2050. In terms of current price of Rs 1397, it can give a return of 46 to 47 percent. The brokerage says that after getting relief from RBI, doubts about the digital capabilities of the bank will be removed from the minds of investors. At the same time, the bank will also be able to take some new initiatives in digital business. The brokerage expects the revenue growth momentum to continue even further.
Bank’s profit will increase
Brokerage house Nomura has given investment advice in the stock and has given a target of Rs 1955. The brokerage says that the focus of the bank will now be on net interest margin and loan growth. There is no negative sentiment with the bank yet. With the increase in digital business, the profit of the bank will increase.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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