HDFC Bank share price gained over 2% on Monday to hit a record high after the private sector lender reported strong Q4 results. HDFC Bank shares rallied as much as 2.27% to an all-time high of Rs. 1,950 apiece on the BSE.
The largest private sector lender in the country, HDFC Bank reported a net profit of ₹17,616 crore in the fourth quarter of FY25, registering a growth of 6.7% year-on-year (YoY), while its net interest income (NII) increased 10.3% YoY to ₹32,070 crore. The bank’s net interest margin (NIM) stood at 3.54% on total assets and 3.73% based on interest-earning assets.
The bank’s asset quality improved on a sequential basis. The board of HDFC Bank also recommended a dividend of ₹22 per share FY25.
Analyst are impressed by HDFC:
Analysts were impressed by HDFC Bank Q4 results, leading to increase in target prices on the stock by many brokerages.
“After growth calibration for the past one year, and under pressure to bring down LDR and manage PSL/margins, HDFC Bank reported better credit growth in 4Q at 5% YoY and 4% QoQ as well as stable core margins. We believe HDFC Bank would be the key beneficiary of the easing regulatory stance on LDR and liquidity which should reflect in better growth in FY26; this would thereby reduce the bank’s growth gap with peers and thus ease investor concern,” said Anand Dama, Senior Research Analyst at Emkay Global Financial Services.
He also believes that the listing of HDB Financial Services would unlock value, which should be a positive catalyst.
According to Nuvama Institutional Equities, HDFC Bank reported strong Q4FY25 earnings with a beat on core NIM, up 5 bps QoQ, and lower QoQ slippage. Core PPOP grew 10% YoY and 2% QoQ, while slippages decreased 15% QoQ.
The HDFC Bank shares Technical outlook:
HDFC Bank, after breaching its all-time high post strong Q4 results, is witnessing vertical momentum, according to Anshul Jain, Head of Research at Lakshmishree Investment.
“However, HDFC Bank stock now looks overextended and a profit booking move towards the ₹1,850 – 1,860 zone is highly likely. HDFC Bank shares are trading well above its 10, 20, and 50-day EMAs (Exponential Moving Averages). Investors holding momentum longs are advised to book partial profits at current levels. A healthy pullback would offer better risk-reward for re-entry as the stock cools off from its stretched levels,” Jain said.
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