In the last 1 month, the share of HDFC Bank has fallen by about 11 percent. The brokerage house has described this fall as a better opportunity to buy in the stock.
HDFC Bank Stock Price: The shares of private banking sector giant HDFC Bank have been under selling pressure this year. HDFC Bank’s share has also weakened in the correction that has come in the market due to geo-political tension. In the last 1 month, the stock has fallen about 11 percent. At the same time, it has broken about 23 percent from its record high. Brokerage house Motilal Oswal has described this fall as a better opportunity to buy in the stock. The brokerage believes that the valuation at current level is very attractive and the stock can give strong returns going forward. The business momentum of the bank is showing steady strength since COVID 19.
Shares lost 11% in 1 month
Shares of HDFC Bank have fallen 11 percent in 1 month. During this, it has come down by Rs 158 to a price of Rs 1339. At the same time, the stock has broken 23 percent from the record high. On 18 October 2021, the bank’s stock touched a level of Rs 1725, which was a 1-year high. Whereas on Tuesday the stock closed at Rs 1328. The 1-year return in the stock has also deteriorated and it has fallen by 14 percent. However, if we look at the return of 5 years, it has been more than 91 percent.
2000 target for the stock
Brokerage house Motilal Oswal has given a target of Rs 2000 in the stock. In terms of the current price of the share, Rs 1328, it can give a return of 51 percent. The brokerage house says that the earnings outlook of the bank is strong, the valuation has also become very attractive. The growth of the bank is getting better as compared to Pierce. Business momentum has now come to the precovid level. Good growth is being seen in the retail segment, while there is strong growth in commercial and rural banking as well.
Bank’s profit expected to increase
According to the report, further improvement in the margins of the bank can be seen during FY23. Retail loan growth is also expected to pick up. The asset quality of the bank is also continuously improving. Restructured book is 1.4% of the loan. The provision buffer is also a positive sentiment. Loan growth will further support net interest margin. In such a situation, the profit of the bank will increase in the coming days. HDFC Bank is expected to have a PAT CAGR of 18 per cent during FY22-24. While the RoA/RoE in FY24 is estimated to be 2.0%/17.5%.
(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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