HDFC Bank Share Price Target 2024: BUY after Q4 results, 1950% dividend announcement? Here's what brokerages recommend

hdfc bank share price target 2024: buy after q4 results, 1950% dividend announcement? here’s what brokerages recommend

HDFC Bank Share Price: India’s largest private sector lender HDFC Bank’s shares in early trade on Monday slumped nearly 1 per cent after posting its fourth quarterly results for the fiscal year 2024.

The private lender on Saturday reported a 37.1 per cent year-on-year (YoY) increase in its standalone profit at Rs 16,512 crore in the quarter ended March 31, 2024. Its net interest income (NII) during the quarter grew by 24.5% to Rs 29,077 crore.

Along with announcing its quarterly numbers, HDFC Bank also declared a dividend payout of Rs 1950 per cent on the face value of Re 1 for FY24. This translates to a dividend of Rs 19.5 per share.

In a major disappointment for its investors, HDFC’s stock has largely remained flat, moving sideways for the past three years. What should investors do? Buy, Sell, or Hold? Here’s what brokerage Motilal Oswal Financial Services and Nuvama recommend.

HDFC Bank Share Price Target 2024, 2025: Motilal Oswal’s Outlook

• HDFC Bank delivered a strong quarter, with NIMs improving by 4 basis points (bps) quarter-on-quarter (QoQ) and the CD ratio declining by 6% to 104%.
• PAT and NII both met the brokerage’s expectations after adjusting for one-offs.
• The bank wisely utilised stake sale gains from Credila (Rs 73.4 billion) and tax credits to reinforce the balance sheet, making floating provisions of Rs 109 billion during the quarter.
• Operating expenses surged due to Rs 15 billion provision for staff ex-gratia, yet the adjusted C/I ratio remained at 41.3%.
• GNPA ratio improved slightly by 2 bps to 1.2%, while PCR remained stable at 74%. Fresh slippages increased marginally to Rs 73 billion or 1.2% of loans.
• Over FY24-26, the brokerage anticipate HDFC Bank to achieve 13.5%/18% CAGR in loans/deposits and 16% CAGR in earnings, resulting in RoA/RoE of 1.9%/15.5% by FY26.
• Motilal Oswal reiterates ‘BUY’ rating on HDFC Bank with a target price of Rs 1,950 (based on 2.4x FY’26E ABV + Rs 253 for subsidiaries).

HDFC Bank Share Price Target 2024, 2025: Nuvama’s Outlook

• In Q4 FY24, HDFC Bank delivered in-line NII and nullified one-off income with one-off expenses, including floating and ex-gratia provisions.
• LDR and LCR, the key monitorables, improved with high deposit and low loan growth.
• Q4 FY24 was in-line after two soft quarters, which is comforting.
• Nuvama has cut EPS by 2%/3% for FY25E/FY26E but roll base to FY26E and arrive at a target price of Rs 1760/2.2x, marginally higher than Rs 1,735/2.2x earlier.
• At the brokerage’s target price, the stock is rated ‘BUY’ (from ‘HOLD’).
• While the brokerage sees long-term franchise value, it believes short-term price performance shall be driven by the consistency of quarterly earnings. With LDR above 100%, Nuvama reckon volatility in quarterly earnings shall persist for some time.

HDFC Bank Share Price Today

Shares of HDFC Bank opened higher today by 1.70 per cent in early trade, however, soon it erased its early gains to trade in the red. At the time of writing, around 10:40 AM, the private lender’s shares traded at Rs 1,518.50 apiece on NSE, down 0.84 per cent agaiinst its previous closing price of Rs 1,531.30.

The bank’s stock has a 52-week range of Rs 1,757.50 – 1,363.55 on NSE.

HDFC Bank Share Price History

HDFC Bank is a constituent of the S&P BSE Sensex and commands a market cap of Rs 11,52,641.27, as of the current market price. According to BSE analytics, the private lender’s stock has slipped 15.06 per ent on an year-to-date (YTD). HDFC Bank’s shares have gained 2.58 per cent in the past 3 months, however, over six months it had remained flat with a slight negative bias. HDFC Bank’ shares have traded southward by 9.38 per cent in the past one year. Looking further back, its shares have delivered returns of 317 per cent in the past 10 years to its long-term investors.

HDFC Bank Dividend History

A dividend is a reward that a company pays to its investors for their investment in the business. It is paid in cash from earnings. A dividend is always calculated and paid on the face value of each stock. The current face value of HDFC Bank shares is Re 1.

Accordingly, the 1900 per cent dividend the company paid in 2023, translates into Rs 19 per share.

In 2023, the company paid a dividend of Rs 19 per share in the month of May. In 2022, the company paid a dividend of Rs 15.5 per share in the month of May. In the year 2021, the company paid a dividend of Rs 6.5 per share in the month of June. In 2019, the company paid a dividend on two occasions, once of Rs 5 per share in the month of August and once of Rs 15 per share in the month of June.

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