HDFC Bank stock trades flat post strong second quarter earnings: Buy or Sell? Check price targets by brokerages

HDFC Bank Share Price NSE, HDFC Bank Share Price Target: HDFC Bank, NSE: HDFCBANK, traded in red in early session on Monday amid bearish D-Street sentiment. The stock quoted a price of Rs 1,434.30 on NSE apiece at 9:24, down by 0.33 per cent. The downtrend in the stock price was seen as bears look to take charge amid tightening global financial conditions.

Domestic equity benchmarks -- Sensex and Nifty started Monday's session on a cautious note tracking a fall in Asian shares following Friday's crash on Wall Street.

HDFC Bank, India's largest private bank, on Saturday released its second quarter results. The lender reported a 22.30 per cent jump in its consolidated net profit at Rs 11,125.21 crore, helped by a reduction in money set aside for bad loans. On a standalone basis, the bank's net profit rose by over 20.1 per cent to Rs 10,605.78 crore as against Rs 8,834.31 crore in the year-ago period and Rs 9,196 crore in the preceding June quarter.

The core net interest income climbed 18.9 per cent to Rs 21,021 crore on the back of an over 23 per cent jump in advances, while the net interest margin was stable at 4.1 per cent. The other income showed a marginal 2.63 per cent growth to Rs 7,596 crore on account of a loss of Rs 253.1 crore on sale or revaluation of investments as against a gain of Rs 675 crore in the year-ago period.

HDFC Bank said that the other income growth excluding the mark-to-market losses incurred amid the rising rates scenario stood at 16.7 per cent. The bank reported a 21 per cent increase in the deposits. Share of the low-cost current and saving account deposits stood at 45.1 per cent as on September 30, 2022. The overall share of gross non-performing assets improved to 1.23 per cent of the book as against 1.35 per cent in the year-ago period and 1.28 per cent three months ago.

HDFC Bank Share Price Targets By Brokerages Post Q2FY23

Following HDFC Bank's second quarter business update, brokerages firms have revised their stock price target.

CLSA maintains BUY rating on HDFC Bank stock with a price target of Rs 2025

Bank of America maintains BUY rating on HDFC Bank stock with a price target of Rs 1900

Nomura maintains BUY on HDFC Bank. Price target Rs 1690

Morgan Stanley on HDFC Bank (CMP: 1439) - Rating Restricted

Credit Suisse on HDFC Bank - Rating Restricted

The bank, which is absorbing its parent HDFC Ltd into itself in corporate India's biggest merger in history, also informed that the National Company Law Tribunal (NCLT) directed it on Friday to hold a meeting of shareholders on November 25 to seek their approval for the merger scheme.

HDFC Bank stock is in a consolidation phase for the past 6 months, delivering a positive return of around 3 per cent to its shareholders. HDFC Bank stock 52-week range is Rs 1725 - Rs 1271.60. Currently, the company's market cap is around Rs 800000 crore, according to the NSE website.

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