Stock Market tip: HDFC Bank shares to buy for 20 pct gains in 12 months, say share bazaar experts

HDFC Bank has consistently sustained loan momentum above 20 per cent YoY in FY19, gradually strengthening the momentum and finishing in the fourth quarter of FY19 with 24.5 per cent YoY loan growth. Unlike the fourth quarter of FY18, when the bank lost some momentum, HDFCB in Q4FY19 actually improved an already strong loan momentum noted in Q3FY19. As acknowledged by the management, some of the momentum observed within corporate loans was owing to short term lending opportunities. Nevertheless, as the systemic loan momentum picks up, we expect HDFCB to gain market share and sustain a stronger loan growth. We are therefore raising our loan growth estimates to 23.5 per cent CAGR FY19-FY21E from 20 per cent previously. 

On the basis of strong fundamentals of the HDFC Bank, the stock market experts are of the opinion that the HDFC Bank share price would touch Rs 2700/stock by March 2019 i.e. in one year or 12 months. Currently, the HDFC share price is oscillating around Rs 2245/stock levels means an investor can expect up to 20 per cent rerun if he or she invests in HDFC Bank shares.

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Detailing about the strong fundamentals of HDFC Bank Rajiv Mehta, Analyst at Yes Securities said, "On account of strong loan growth, stable asset quality and earnings to witness 23 per cent CAGR over FY19-21, the HDFC Bank shares are showing strong upside momentum and can touch Rs 2700 per share levels in 12 months."

Standing in sync with Rajiv Mehta's views Chintan Shah, Research Analyst at Elara Securities said, "The HDFC Bank shares are bullish in mid-term perspective and can show Rs 2483/share levels in one to three month time." 

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Hence, on the basis of expert opinion, the HDFC Bank shares are bullish in mid-term to long-term and an investor can buy this counter for 10 per cent to 20 per cent gains from current levels.