HDFC Bank has been making a big comeback! After facing some jokes and doubts due to a merger with its parent company, HDFC, its shares have soared by ₹3 lakh crore in just six months.
Once overshadowed by ICICI Bank, HDFC Bank is now outperforming its rival in recent months. Analysts believe that the bank is stronger after the merger and is set for steady growth. In the past six months, HDFC Bank’s stock price has increased by about 19%, making it the best-performing large private bank in India. Its stock even hit a new high of ₹1,880 recently, and its market value reached an impressive ₹14 lakh crore!
Many experts are optimistic, giving price targets as high as ₹2,550. Out of 40 analysts, none suggest selling the stock, and 28 recommend buying it strongly. For BNP Paribas, HDFC Bank is the top pick in the banking sector, even better than ICICI Bank.
In the September quarter, foreign investors bought a lot of HDFC Bank shares, increasing their stake by 0.85%. They spent about ₹11,000 crore on the bank. Retail investors, however, seem to have missed out, as they were selling their shares during the same period.
Recently, there has been more interest in HDFC Bank, especially after its increased index weight due to MSCI’s November changes. This attracted around $1.88 billion from passive investments.
HDFC Bank expects its loan growth for this year to be slower than the overall market but plans to grow faster in the following years. The bank’s loans are performing well despite some issues faced by smaller banks, making it a safe choice for investors. Market expert Sandip Sabharwal explains that when smaller banks struggle, people flock to quality banks like HDFC Bank.
Investors are also watching for good news with the upcoming IPO of HDB Financial Services, a subsidiary of HDFC Bank.
(Disclaimer: The opinions shared by experts are their own and do not represent the views of Niftystat