NEW DELHI: Shares of HDFC BankNSE -1.09 % were trading with marginal gains in morning trade on Monday, following the company’s March quarter results.
The bank on Saturday reported a 22.63 per cent year-on-year (YoY) jump in March quarter net profit to Rs 5,885.12 crore, which was better than the Rs 5,805 crore profit estimate that analysts had projected in an ETNow poll.
HDFC Bank’s Rs 5,885.10 crore quarterly profit was highest ever for any quarter, as per data compiled from AceEquity database. This was the third straight quarter when the lender’s profit was in excess of Rs 5,000 crore. Earlier, the bank had reported Rs 5,585 crore profit for December quarter and Rs 5,005.70 crore for September quarter.
Around 10 am, the scrip was trading at Rs 2,296.90, up 0.29 per cent on BSE.
Brokerages look satisfied with the company’s performance.
“The bank’s strong lending and deposit franchise, healthy capital position and impeccable asset quality performance across cycles have been aiding stable RoAs over the years,” Reliance Securities said.
The brokerage has maintained its ‘Buy’ recommendation on the stock with a SOTP-based target price of Rs 2,650.
Motilal OswalNSE -3.67 % Securities also has a buy rating on the stock with a target price of Rs 2,650. The brokerage said the bank’s strong capitalization and liquidity levels are likely to help it sustain this growth momentum.
“HDFC Bank has been consistently gaining market share across retail product segments and we expect it to deliver 22 per cent/22 per cent loan book/PAT CAGR over FY19-21. Margins are likely to remain stable, while strong control on operating leverage is likely to result in steady return ratios (RoA/RoE of 1.9 per cent/17.2 per cent in FY21E),” the brokerage added.
The shares of the company closed 0.96 per cent lower Rs 2,268.25 on BSE.