Wealth creation pick: Buy HDFC Bank shares, says Anil Singhvi; check out his target price

Anil Singhvi wealth creation pick: Zee Business Managing Editor Anil Singhvi recommends going long on HDFC Bank shares. He expects HDFC Bank — the country's largest lender by market value — to benefit from its merger with Housing Development Finance Corporation (HDFC).

Anil Singhvi shares target prices as high as Rs 2,500 for HDFC Bank shares 

Singhvi has laid out targets of Rs 1,850, Rs 2,200 and Rs 2,500 apiece for HDFC Bank shares from a perspective of 1-3 years. His highest target implies an upside potential of 59.9 per cent in the HDFC Bank stock. 

Why Anil Singhvi likes HDFC Bank shares

Singhvi has mentioned a few factors as the main rationale behind his call on HDFC Bank shares:

• HDFC Bank has a chance to enter top 10 financial institutions around the globe after meger with HDFC
• Merged entity could be included in MSCI index; if that happens, one can expect buying to the tune of $3-4 billion 
• HDFC Bank is among FIIs' favourite stocks
• Strong asset quality 
• Good track record; return on investment double in five years
• Reasonable valuation

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What ICICI Securities makes of HDFC Bank

ICICI Securities has maintained a ‘buy’ call on HDFC Bank with a target of Rs 1,874 apiece, implying upside potential of 19.9 per cent. The brokerage believes that HDFC Bank has strong growth and with improving asset quality.

Also Read: Finance Minister removes income tax benefit from debt mutual funds, how will investors and AMC be affected? 

HDFC Bank: Historical performance 

HDFC Bank shares have declined nearly four per cent so far in 2023, still better than a 6.3 per cent fall in the Nifty headline index.

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