Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

HDFC Bank shares hit yearly low post mixed Q3 earnings reviews

EditorNatashya Angelica
Published 2024-01-24, 01:22 a/m
Updated 2024-01-24, 01:22 a/m
© Reuters.

MUMBAI - HDFC Bank, one of India's premier banking institutions, witnessed its shares tumble to a yearly low on BSE, with market valuation plunging to around Rs 11 lakh crore. This development comes in the wake of the bank's third-quarter earnings report, which showcased a considerable rise in net profit exceeding Rs 16,000 crores. The bank's total income also reflected significant growth from the corresponding period in the previous year.

Despite the robust financial performance reported for the third quarter, analysts' reviews were mixed, leading to varied stock performance. CLSA has maintained a 'buy' rating on HDFC Bank's shares, setting a target price of Rs 2025. Similarly, KR Choksey recommends a 'buy' with a target of Rs 1950, indicating a positive outlook on the bank's future performance.

On the other hand, Nuvama has adopted a more cautious stance, downgrading the stock to 'hold' and lowering its target price to Rs 1730. This mixed sentiment among analysts is reflected in the bank's stock price movement, with a notable decline to Rs 1,439.70, marking the lowest valuation within the year.

Investors and market watchers are keenly observing HDFC Bank as it navigates through the financial landscape post its third-quarter earnings, with analyst ratings and target prices signaling varied expectations for the bank's trajectory in the coming months.

InvestingPro Insights

As HDFC Bank faces a tumultuous period with its share prices hitting a yearly low despite a solid earnings report, a closer look through InvestingPro data and tips can provide additional context for investors. According to InvestingPro, HDFC Bank has raised its dividend for three consecutive years, indicating a commitment to returning value to shareholders. Additionally, two analysts have revised their earnings upwards for the upcoming period, suggesting a potential rebound or better-than-expected future performance.

In terms of real-time data, the bank's market capitalization stands at approximately $799.74 million, with a remarkably low P/E ratio of 4.54, hinting at potential undervaluation. The revenue growth for the last twelve months as of Q3 2023 was an impressive 88.52%, which is a strong indicator of the bank's ability to expand its income streams effectively.

For investors looking to delve deeper into HDFC Bank's financial health and stock performance, InvestingPro offers a range of additional tips, including insights on the stock's position in oversold territory and its performance relative to industry peers. With a special New Year sale, a subscription to InvestingPro is now available with a discount of up to 50%. To take advantage of this offer, use coupon code "SFY24" to get an additional 10% off a 2-year InvestingPro+ subscription, or "SFY241" to get an additional 10% off a 1-year InvestingPro+ subscription. With these resources, investors can make more informed decisions backed by comprehensive data and expert analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.