HDFC Bank share price target: HDFC Bank shares hit record high as brokerages raise target prices after Q2 results

Mumbai: Shares of HDFC Bank hit a record high today as the bank reported a 17% year-on-year growth in the September quarter profit to Rs 8,834 crore and brokerages raised target price on the stock by up to 11.7% following the result.

ICICI Securities, Antique Stock Broking, Edelweiss, Nomura, CLSA and Motilal Oswal retained buy rating on the stock.

ICICI Securities, Nomura and CLSA raised the target price by 7.5-11.7%.

“HDFC Bank’s second quarter results were strong with lower slippage than expected and improving growth especially in NIM (net interest margin) accretive segments like retail and commercial,” said CLSA.

“Management commentary indicated retail/commercial growth will continue to accelerate and this should reverse the muted margin trend as well,” said CLSA, which expects HDFC Bank to report an 18% compounded growth in earnings over the FY21-FY24 period.

HDFC Bank’s lower asset quality vulnerability than peers even in COVID times bears testament to its risk selection and capital productivity consciousness.