On January 17, 2024, HDFC Bank Ltd experienced a sharp decline of over 8% in a single day following the release of its Q3 results, where reported flat margins for the second consecutive quarter. The stock hit a low of ₹1,527.25, marking a 9% decrease from the previous day’s closing price of ₹1,678.95, and ultimately closed at ₹1,536.90.
Despite having observed a noteworthy gain of over 16% in the past two months, the beginning of the current month brought about a reversal of fortune as HDFC Bank started with a decline. By the third week of January, the stock had tumbled by more than 8%. Looking at the performance over the past year, from January 2023 to December 2023, the company registered a modest gain of 6%.
In this article, we delve into a comprehensive analysis of HDFC Bank Ltd share price targets for the years 2024, 2025, 2026, 2027, 2030, 2040, and 2050 after the Q3 results. Our examination spans various perspectives, including financial metrics, fundamental analysis, technical analysis, and more.
Table of Contents
About
HDFC Bank Ltd, incorporated in August 1994, stands as a prominent player in the Indian banking sector. Renowned for its diverse offerings, the bank provides a comprehensive range of banking and financial services, encompassing retail banking, wholesale banking, and treasury operations. Notably, HDFC Bank holds the position of being the largest private sector bank in India in terms of Market Capitalization.
As a key player on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), HDFC Bank is the third company listed by Market Capitalization, emphasizing its significant presence and influence in the Indian financial landscape.
In a recent expansion of its services, HDFC Bank has taken footsteps into broking services, adding a new dimension to its portfolio. The bank facilitates broking activities through the HDFC Sky app, offering a user-friendly platform for individuals to engage in various aspects of broking services.
| Founded | August 1994 |
| Listed On (NSE,BSE) | 8 November 1995 |
| Symbol | HDFCBANK |
| CEO | Sashidhar Jagdishan (Oct 2020 – till date) |
| Sector | Banking |
| Headquarters | Mumbai |
Financial Details
As of January 17, 2024, HDFC Bank demonstrates a robust financial position and market standing. The Market Cap stands at an impressive ₹11,67,028 crores, it is the third largest company by Market Cap listed on NSE and BSE.
The Stock P/E ratio is reported at 16.2, which is slightly above the industry average of 14.25.
In terms of financial performance, the bank exhibits a Return on Capital Employed (ROCE) of 6.24%, it is almost same as the industry average of 6.45%.
The Return on Equity (ROE) stands at 17.1%, which is above the industry average of 13.35%.
The bank maintains a prudent financial structure with a Debt to Equity ratio of 7.39, indicating a balanced approach to financing. The absolute Debt stands at ₹21,39,212 crores, and the bank’s conservative approach is reflected in the manageable debt levels.
Note: Banks generally have Debt to Equity ratio in the range of 4 - 8.
In terms of holdings, FII Holding represents a significant 52.3% of the total shares DII Holding accounts for 30.5% of the shares.
Earnings Per Share (EPS) is reported at ₹89.6, which is almost six times of industry average of ₹15.77
The bank has achieved an impressive Sales Growth of 58.6%, underscoring its ability to expand and increase revenue.
| Market Cap | ₹ 11,67,028 Cr. | Stock P/E | 16.2 |
| ROCE | 6.24 % | ROE | 17.1 % |
| Debt to equity | 7.39 | Debt | ₹ 21,39,212 Cr. |
| FII Holding | 52.3 % | DII Holding | 30.5 % |
| EPS | ₹ 89.6 | Sales growth | 58.6 % |
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Financial Statement
As of January 17, 2024, HDFC Bank’s financial performance reflects remarkable growth over the past three years, with significant percentage increases in key metrics.
Net Sales surged to ₹170,754 crores in 2023, marking a substantial increase of approximately 25.7% from ₹135,936 crores in 2022 and about 32.9% from ₹128,552 crores in 2021.
In terms of Other Income, the upward trajectory continued, reaching ₹33,912 crores in 2023. This signifies a percentage increase of approximately 6.8% from ₹31,759 crores in 2022 and around 24.1% from ₹27,333 crores in 2021.
Examining expenditures, which include Expenses + Interest, HDFC Bank reported figures of ₹140,822 crores in 2023, reflecting a notable percentage increase of approximately 22.2% from ₹115,141 crores in 2022 and about 26% from ₹111,705 crores in 2021.
Finally, the Profit After Tax exhibited robust growth, reaching ₹46,149 crores in 2023. This represents a significant percentage increase of approximately 20.9% from ₹38,151 crores in 2022 and around 44.8% from ₹31,857 crores in 2021. These figures underscore the consistent and notable upward trajectory in HDFC Bank’s financial performance over the specified three-year period.
| Particulars | 2023 | 2022 | 2021 |
|---|---|---|---|
| Net Sales | 170,754 | 135,936 | 128,552 |
| Other Income | 33,912 | 31,759 | 27,333 |
| Expenses + Interest | 140,822 | 115,141 | 111,705 |
| Profit After Tax | 46,149 | 38,151 | 31,857 |
Technical Analysis of HDFC Bank Ltd
HDFC Bank Ltd experienced a sharp decline of over 8% on January 17, 2024, prompting concerns in the stock market. The anticipated price range for the downside is between ₹1459 to ₹1500.
Examining key support levels, the initial support zone is at ₹1500, marked by a significant trendline that investors closely monitor for potential stabilization.
The second support zone is identified in the range of ₹1459 to ₹1465, signaling a potential consolidation phase. Traders and investors will scrutinize this range for indications of either a breakout or further breakdown, making it a critical juncture for short-term market sentiment.
Digging deeper, the third and more substantial support range lies between ₹1300 to ₹1280. In this scenario, the stock might undergo an extended consolidation period. The subsequent movement from this level could set the stage for achieving short-term targets of ₹1717 and ₹1905, providing valuable insights into the stock’s recovery or continued bearish trend.
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Table of HDFC Bank Ltd Share Price Target
| Year | Min Target | Max Target |
|---|---|---|
| 2024 | ₹1,632 | ₹1717 |
| 2025 | ₹1,731 | ₹1,836 |
| 2026 | ₹1,891 | ₹1,905 |
| 2027 | ₹1948 | ₹2,066 |
| 2030 | ₹3,126 | ₹3,220 |
| 2040 | ₹12,233 | ₹13,828 |
| 2050 | ₹48,542 | ₹50,730 |
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HDFC Bank Ltd Share Price Target for 2024:
Minimum Target: ₹1,632
Maximum Target: ₹1,717
In the upcoming year, the company is anticipated to maintain a price range between ₹1,632 and ₹1,717.
HDFC Bank Ltd Share Price Target for 2025:
Minimum Target: ₹1,731
Maximum Target: ₹1,836
Moving into 2025, the projected price range widens, reaching between ₹1,731 and ₹1,836.
HDFC Bank Ltd Share Price Target for 2026:
Minimum Target: ₹1,891
Maximum Target: ₹1,905
Further into the future, specifically in 2026, the anticipated price range expands to ₹1,891 to ₹1,905.
HDFC Bank Ltd Share Price Target for 2027:
Minimum Target: ₹1,948
Maximum Target: ₹2,066
By 2027, the company’s share price is expected to aim for a range of ₹1,948 to ₹2,066.
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HDFC Bank Ltd Share Price Target for 2030:
Minimum Target: ₹3,126
Maximum Target: ₹3,220
Looking ahead to 2030, the minimum and maximum targets extend to ₹3,126 and ₹3,220, respectively.
HDFC Bank Ltd Share Price Target for 2040:
Minimum Target: ₹12,233
Maximum Target: ₹13,828
In the long term, by 2040, the company is anticipated to potentially reach a price range between ₹12,233 and ₹13,828.
HDFC Bank Ltd Share Price Target for 2050:
Minimum Target: ₹48,542
Maximum Target: ₹50,730
Projected into 2050, the minimum and maximum targets suggest a potential price range of ₹48,542 to ₹50,730.
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Positive and Negative Points of HDFC Bank Ltd
Positive
Negative
Disclaimer
Investing in stock market is risky and subject to the market condition. This article provides an examination of the company for educational purposes only. We are not SEBI( Stock exchange board of India) registered advisors, and this is not an investment advice. We do not provide tips or calls. Before making any investment decisions, please conduct your own research or consult a qualified financial advisor.
FAQs
Q1: What are the minimum and maximum share price targets for HDFC Bank Ltd in 2024?
A1: The minimum target for HDFC Bank Ltd’s share price in 2024 is ₹1,632, while the maximum target is ₹1,717.
Q2: What is projected share price target for HDFC Bank Ltd in 2025?
A2: In 2025, the projected price range for HDFC Bank Ltd’s shares is between ₹1,731 and ₹1,836.
Q3: What is the expected share price target for HDFC Bank Ltd in 2026?
A3: For 2026, the minimum target is ₹1,891, and the maximum target is ₹1,905.
Q4: What is the anticipated share price target for HDFC Bank Ltd in 2027?
A4: In 2027, HDFC Bank Ltd is expected to target a share price range between ₹1,948 and ₹2,066.
Q5: What are the projected share price targets for HDFC Bank Ltd in 2030?
A5: In 2030, HDFC Bank Ltd is anticipated to target a share price range between ₹3,126 and ₹3,220.
