HDFC Bank's Q4FY25 results were outstanding. Shares reached an all-time high of ₹1950. Brokerage firms predict a rise to ₹2200.
HDFC Bank Q4FY25: HDFC Bank presented excellent financial results for the March quarter (Q4FY25), causing the bank's shares to surge 2.5% on Monday, reaching an all-time high of ₹1950 on the BSE. This surge is attributed to the bank's increasing quarterly profit, stable net interest margin, and improved asset quality. The bank's net profit in Q4 was ₹17,616 crore, representing a 6.7% growth.
Brokerage Houses Issue 'BUY' Rating, Expecting a Rise to ₹2200
- Following the quarterly results, several leading brokerage firms issued a positive outlook on HDFC Bank's shares.
- Motilal Oswal has set a target price of ₹2200 for the share and maintained its 'BUY' rating.
- Nuvama Institutional Equities also maintained its 'BUY' rating and increased its target price from ₹1950 to ₹2195.
- Emkay Global described the share as having a 15% upside potential, with a target of ₹2200.
Financial Highlights: Improvement in Net Interest Income and Provisioning
HDFC Bank's Net Interest Income (NII) increased by 10.3% year-on-year to ₹32,060 crore, while the Core Net Interest Margin (NIM) rose by 3 bps on a Q-o-Q basis to 3.46%. Provisioning also saw a 76% decline, reaching ₹3,190 crore – this decline is due to improved asset quality.
Gross NPA decreased to 1.33%, and Net NPA stood at 0.43%
Slippage decreased from ₹8,800 crore to ₹7,500 crore compared to Q3.
Market Performance
HDFC Bank shares have delivered an impressive 25.91% return over the past 12 months. Over the past three months, the stock has risen by approximately 17.44%. The bank's market capitalization on the BSE has surpassed ₹14.62 lakh crore.
Investor Alert: Should you still Buy?
Brokerage houses consider this stock a b buy in the mid to long term. However, considering market volatility, investors should consult a financial advisor before making any decisions.
