Shares of HDFC Bank were in focus today after BofA Securities assigned a target price of Rs 1,900 on the banking stock. The latest target price for HDFC Bank translates into a gain of 16.56% or Rs 270 against the previous close of Rs 1630.70 on BSE. The brokerage has maintained a buy call on the country’s largest private sector lender.
HDFC Bank is well-positioned to deliver ahead of market expectations, said the global brokerage. Earnings delivery is expected to be ahead of market expectations, it added.
The global investment bank said that the risk-to-reward ratio is very attractive at the current valuations.
However, financial services firm Motilal Oswal has a target price of Rs 1,700. The market price of HDFC Bank was Rs 1628.9 when the recommendation was made. Motilal Oswal Financial Services has recommended a stop loss of Rs 1,595.
The stock is making higher lows from the last three months and coming out of its pole and flag pattern breakout, the brokerage said.
Meanwhile, HDFC Bank stock closed flat at Rs 1638.70 on Friday against the previous close of Rs 1630.70 on BSE. HDFC Bank stock stands higher than the 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages.
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The large cap stock has gained 9.23 percent in a year and added 10.74 per cent in 2022.
Total 0.79 lakh shares of the firm changed hands amounting to a turnover of Rs 12.82 crore on BSE. The market cap of the lender stood at Rs 9.13 lakh crore on BSE.
The stock hit a 52-week high of Rs 1,721.85 on April 4, 2022 and a 52-week low of Rs 1,271.75 on June 17, 2022.
The private sector lender reported a 22.30 per cent rise in its consolidated net profit to Rs 11,125.21 crore for the second quarter ended September 30. Net interest income rose 19 per cent year-on-year to Rs 21,021 crore. The bank’s core net revenue (excluding trading and Mark to Market losses), grew by 18.3 per cent to Rs 28,869.8 crore for the quarter from Rs 24,409.7 crore for the quarter ended September 30, 2021.
