HDFC Bank Share Price Highlights 26 June 2024: HDFC Bank stock ends in red amid positive outlook, dips 1%

“HDFC Bank Limited is trading at a nearly 3% discount from its all-time high price level at Rs. 1757. Judging by its recent market momentum, I expect the stock to record a small pullback after it hits the Rs. 1740 range. From that range onward, the stock is likely to continue chasing its uptrend momentum. The stock is trading with an RSI of 75 on the daily, 68 on the weekly, and 58 on the monthly timeframes, suggesting it is currently in the overbought condition. Hence, I recommend encashing any dip the stock might present in the upcoming days. Those interested in the stock may consider the buying range of Rs. 1630-1650. For HDFCBANK stock, I suggest a holding period of 2-7 days, and adhering to a stop loss of Rs. 1600 to safeguard gains.” Suggested VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today

A report on HDFC Bank informed that a shift in the portfolio mix towards retail assets along with replacement of HDFC Ltd’s higher-cost borrowings with deposits are key levers for margin improvement. Some of HDFC Ltd’s high-cost borrowings will begin maturing in FY25. Near-term constraints w.r.t higher CoF will continue to limit NIM expansion, thereby keeping margins largely steady at current levels 3.6% of Interest earning assets/3.4% Core NIMs in Q4FY24. We expect a gradual margin recovery from FY25E onwards and expect NIMs to be at 3.8% by FY26E. Margin improvement remains not only a key RoA improvement lever but also a key re-rating trigger for HDFCB.

HDFC Bank Ltd. has been fined ₹40,000 by Kerala’s Central GST and Central Excise Superintendent for excess input tax credit during FY 2019-20. The bank plans to explore legal options, including appeals, in response to the penalty.

Trivesh D, COO Tradejini, said, “Shares of HDFC Bank on Tuesday settled 2.32% higher at ₹1,757.8, marking a 52-week high. Today, the volume traded till 10 AM was 18.06% lower than yesterday.

I see HDFC Bank’s recent performance as steady, with some room for growth. While the stock is up 12% in a month, it’s still below its one-year high. Interestingly, compared to the broader market which gained atleast 23% in the last 3 years, HDFC’s returns haven’t been impressive.

Since February 2021, while other banks have shown improvements, HDFC Bank has remained within the same range.

However, HDFC Bank remains a safe long-term bet due to its strong fundamentals. Overall, the private banking sector, including HDFC, is well-positioned to benefit from a recovering credit environment.”

Manoj Dalmia, CEO, Proficient Equities Pvt Ltd, said, “Since its 52-week low of ₹1,363.55 on February 14 of this year, HDFC Bank’s stock has increased 25%, making it the greatest month since December of previous year, when shares increased by 9.6%. The bank would have had its highest performance since August 2021 if it managed to generate a double-digit return this month. The stock’s Relative Strength Index indicates that it is currently overbought.

HDFC Bank has a price-to-book (P/B) ratio of 3.29, earnings per share (EPS) of 84.3, and a P/E ratio of 20.2. Strong investor interest is indicated by heavy trading volumes; the bank’s market capitalization is ₹12,95,701 crore.

The 25% increase in HDFC Bank’s shares from its 52-week low, along with positive analyst estimates and robust technical indications, highlight the possibility of substantial profits in well-managed financial institutions for investors. To optimize investing chances in this top-performing stock, it will be imperative to keep a close eye on critical levels of support and resistance.”

“HDFC Bank is finally trying to catch up after staying down for a very long period.

One of those pvt sector banks which have shown big under performence viz a viz it’s peers.

Very positive on Pvt Banking space and looks like after 3 years of outperformance of PSU banks and with farmer loans getting waiver in some states , a switch to pvt banking space is going to happen pretty quick.

HDFC Bank is well positioned to head higher. Currently it’s facing resistance at multiple tops in weekly charts around 1725. A close above it will open doors for a good momentum in the stock in new ATHs.” says Vinod Jhaveri, independent analyst, Pure Technicals.

According to a report by Axis Securities, “HDFCB’s focus remains on gaining incremental deposit market share while keeping CoF range-bound. The bank will look to leverage the strength of its franchise, ensure enhanced customer engagement, elevate ‘service-first’ culture, and ensure increasing customer wallet share in order to ensure sustainable retail franchise-led deposit growth. However, despite its focus on mobilizing granular deposits, HDFCB will not want to be an outlier in terms of deposit pricing. As HDFC Ltd’s borrowings get replaced, HDFCB is likely to have substantial liquidity, which it would deploy in pursuing growth. Till then the bank will look to pursue credit growth where the risk-reward ratio is favourable. Thus, with deposit growth likely to outpace credit growth we expect a visible improvement in LDR over the medium term.”