HDFC Bank shares: During the past week, there was notable buying activity in HDFC Bank shares. Within this period, the share price of HDFC Bank increased by 6 percent, leading to speculation that the large-cap banking stock may be transitioning out of a base-building phase following its merger with HDFC Ltd. Experts anticipate that HDFC Bank will announce its Q4 2024 results on April 20, 2024. They attribute the recent surge in HDFC Bank’s share price to a favorable Q4FY24 business update, surpassing expectations. Analysts suggest that the stock is currently facing significant resistance at ₹1,730 per share, and if this barrier is surpassed, it could trigger a substantial upward movement in HDFC Bank shares.
HDFC Bank share triggers
According to Shreyansh V Shah, a Research Analyst at StoxBox, the recent surge in HDFC Bank shares can be attributed to the positive fourth-quarter business update, which exceeded investor expectations and hinted at early signs of merger synergies. Shah highlighted the strong performance in deposits, particularly in retail deposits, as a significant factor driving optimism about the bank’s performance. Despite concerns about the bank’s Loan-to-Deposit Ratio (LDR), HDFC Bank is aiming to enhance its loan-deposit ratio, focusing on incremental growth in this ratio. Additionally, with a strategic focus on expanding branches in semi-urban and rural areas, Shah believes that HDFC Bank is positioned for improved performance in the upcoming quarters.
The StoxBox expert also noted that the extensive branch network of HDFC Bank enables its subsidiaries to tap into substantial cross-selling prospects, consequently bolstering top-line growth indirectly. Over the past five years, earnings have shown a Compound Annual Growth Rate (CAGR) of 17%, while market capitalization growth stands at approximately 9%. This suggests considerable potential for HDFC Bank’s long-term expansion.
Target share price for HDFC Bank
Anticipating further upside in HDFC Bank shares, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, remarked, “HDFC Bank shares have recently broken out at ₹1,480 per share, signaling a bullish trend on the charts. Investors holding HDFC Bank shares are advised to retain the stock with an immediate target of ₹1,620, while maintaining a stop loss at ₹1,440 per share. Upon a decisive breach of the ₹1,620 mark, it’s likely that the share price could reach between ₹1,710 to ₹1,720.”
The expert from Anand Rathi reiterated that HDFC Bank’s share price has attempted to emerge from its base-building phase previously, only to be thwarted by the formidable resistance level at ₹1,730 per share. However, should the large-cap banking stock successfully breach this barrier and sustain a weekly close above ₹1,730 per share, it could signal a highly bullish sentiment for the stock.
HDFC Bank’s Q4FY24 financial report
As of March 31, 2024, HDFC Bank registered a year-on-year (YoY) increase of 55.4% in gross advances, amounting to ₹25.08 lakh crore, compared toas of March 31, 2023, ₹16.14 lakh crore. Sequentially, the advances of India’s largest private sector bank grew by 1.6% from in December 2023: ₹24.69 lakh crore.
Taking into account transfers through inter-bank participation certificates and bills rediscounted, HDFC Bank stated in a BSE filing last Thursday that its advances witnessed an approximate growth of53.8% over the end of March 2023 and roughly 1.9% (₹472 billion) over the end of December 2023.
Date of HDFC Q4 results: 2024
HDFC Bank has announced that its board of directors will convene to review and endorse the quarterly results for Q4FY24 on April 20, 2024. The largest private lender in India disclosed the HDFC Bank Q4 2024 results via an exchange filing.
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HDFC Bank informed the Indian stock market exchanges through an exchange filing that the Board of Directors’ meeting is scheduled for Saturday, April 20, 2024. The agenda of the meeting includes the consideration of the audited financial results for the year ended March 31, 2024, along with the consolidated accounts for the same period.
