Time period given by analyst is one year when HDFC Bank Ltd. price can reach defined target.
HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 827736.72 Crore).
HDFC Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2020.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 38933.63 Crore, down -4.83 % from last quarter Total Income of Rs 40909.49 Crore and up 6.09 % from last year same quarter Total Income of Rs 36698.59 Crore. The bank reported net profit after tax of Rs 7922.09 Crore in latest quarter.
Investment Rationale
HDFC Bank has informed stock exchanges that the RBI vide its letter dated 17th Aug’21, has relaxed the restriction placed on sourcing of new credit cards. However, restrictions on all new launches of digital business generating activities planned under the bank’s Digital 2.0 initiative will continue till further review by RBI. HDFC Bank in its FY21 annual report highlighted that third-party audit of the bank’s IT systems was over and the report was submitted to the regulator. It was awaiting decision from the RBI. With the embargo being there for almost 8 months since 2nd Dec’20 and incremental disclosures on audit being over and report submitted, relaxation of the restriction is an expected and positive development. The stock has underperformed ~15% to bank nifty since Dec’20. Bank has highlighted it is well prepared to gain market share in credit card once the embargo is lifted.
Promoter/FII Holdings
Promoters held 25.9 per cent stake in the company as of June 30, 2021, while FIIs held 39.7 per cent, DIIs 21.2 per cent and public and others 13.2 per cent.
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