In Tuesday’s trade, HDFC Bank’s share price fell more than 3% to Rs 1,348.05 per share on the BSE.
The stock has dropped more than 15% in the last 9 days, and nearly 10% in the last 5 days. In comparison, the S&P BSE Sensex has dropped 3% in the last five days.
According to analysts, despite the fact that the HDFC Bank merger news was positive and the Q4FY22 results were satisfactory, the HDFC Bank stock price has fallen sharply as a result of very high expectations and a weak market sentiment. Housing Development Finance Corporation announced earlier this month that it will merge with its subsidiary HDFC Bank. The transaction is subject to regulatory approval.
“Technically, the stock appears appealing, and the current range of Rs 1340-1360 can be used to accumulate for higher targets of Rs 1600-1845 in the coming months,” Pavitraa Shetty, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.
HDFC Bank reported a 24% increase in consolidated net profit to Rs 10,474 crore, in line with most analysts’ expectations.
Profit at the bank increased significantly when compared to the previous year, but was marginally lower sequentially.
The lifting of the RBI’s restrictions on card or digital initiatives, management’s guidance to re-accelerate retail credit growth and focus on risk-adjusted margins should be long-term positives.
Analysts expect proforma average RoE for HDFC Bank (merged) at 16.6% over FY24-25E.
