HDFC Bank shares gain; Morgan Stanley, Jefferies maintain 'Buy', see up to 39% upside

HDFC Bank share price NSE: HDFC Bank shares traded in positive territory on Thursday, October 5, after global brokerages Morgan Stanley and Jefferies maintained 'buy' calls on the country's largest private sector lender. The analysts gave a thumbs-up to the stock after HDFC Bank reported a strong quarterly business update, which was released on Wednesday, October 4. HDFC Bank rose more than 1 per cent in morning deals to touch the day's high of 1,544.9 on the NSE, rising for the second session. The counter finished at Rs 1,535.85, up Rs 6.3, or 0.41 per cent on the NSE.

Here's how the counter moved on Thursday: 

Source: NSE

HDFC Bank Q2 update

HDFC Bank's total deposits grew 18.2 per cent year-on-year (YoY) to Rs 21,73,000 crore in the July-September quarter. Its gross advances aggregated to Rs 23,54,500 crore, marking an increase of 57.7 per cent compared with the year-ago period, after its merger with parent Housing Development Finance Corp. Read more on HDFC Bank Q2 update 

Morgan Stanley has maintained an overweight rating on the stock with a target price of Rs 2,110. The brokerage sees an upside of 38 per cent on the lender from the previous close of Rs 1,529.55. In addition, Jefferies has maintained a buy stance on the counter with a target price of Rs 2,030, which translates to an upside of 33 per cent from Wednesday's closing. As per the brokerage, Q2's key takeaway is good deposit flows of Rs 1 trillion (overall) that may reflect retail flows of Rs 70,000–Rs 80,000 crore for the quarter against Rs 38,000 crore logged in Q1. The brokerage, in its note, added that a clearer detail on retail deposit flows as provided until Q1 would have been useful.

HDFC Bank shares history

HDFC Bank shares have lost nearly 6 per cent of their value in 2023 so far (January 2), in contrast to a 6.4 per cent rise in the headline Nifty50 index.

HDFC Bank merged with HDFC on July 1 in a $40 billion deal, the largest in India's corporate history. The mega-merger helped HDFC Bank enter the club of the world's top five lenders in terms of market value.

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