Following HDFC Bank’s Q2 earnings report, several brokerage firms have shared their assessments of the company. Here’s a summary:
Citi recommends a “Buy” rating for HDFC Bank, setting a target price of Rs. 2,110. They highlight that the profit surge is attributed to non-interest income, reduced credit costs, and tax reversals. However, they note that the Core Net Interest Margins (NIMs) have been impacted by increased liquidity. The bank’s advances growth is primarily driven by commercial and rural banking, while deposit accretion remains favorable. Additionally, the bank’s asset quality has shown improvement.
Morgan Stanley is “Overweight” on HDFC Bank and has set a target price of Rs. 2,110. They were impressed with the Q2 profit, which exceeded their expectations and resulted in a Return on Assets (RoA) of 1.9%. This was mainly due to reduced credit costs, gains in the treasury, and lower taxes.
InCred suggests adding HDFC Bank to your portfolio with a price target of Rs. 2,000.
In the meantime, HSBC recommended investors to “Purchase HDFC Bank,” though they revised their target price downward, reducing it to Rs. 1,850 from the previous Rs. 1,930.
As of Tuesday, HDFC Bank’s stock closed at Rs. 1,542.50, marking a 0.84% increase on the NSE.