Title: HDFC Bank Share Price Rebounds After Impressive Q1 Results 2023: Analysts Advise Hold or Buy
HDFC Bank’s share price rebounded from its intraday low of ₹1,633 apiece on the NSE following the announcement of its Q1 results for 2023. Although the share price initially opened higher at ₹1,650, profit booking triggered a decline, pushing it down to ₹1,633. However, with the release of better-than-expected results, buying interest surged, and the stock climbed to its intraday high of ₹1,675, marking a 2.50% increase from the previous day’s low.
Experts in the stock market have hailed HDFC Bank’s Q1 results for 2023, as its profits surged by about 30% YoY during the April to June quarter of the current financial year. The private lender has shown improvements in its net interest income and margins, which are expected to further boost its current and savings account (CASA) in the upcoming months. Encouraging HDFC Bank shareholders to hold on to their stock, analysts have set a near-term target of ₹1,850 per share. They have also suggested fresh buying opportunities above ₹1,780 or around ₹1,750 apiece levels.
Explaining the reason behind the surge in HDFC Bank’s share price after its Q1 results, Vaibhav Kaushik, a Research Analyst at GCL Broking, highlighted the bank’s better-than-expected results, particularly its 30% YoY rise in net profit and 21% increase in net interest income. Since the merger between HDFC Bank and HDFC, the CASA has already shown improvement, and the remarkable quarterly results for Q1FY24 are expected to enhance it further.
Sumeet Bagadia, Executive Director at Choice Broking, added that HDFC Bank’s shares are displaying a positive chart pattern, suggesting a potential rise to ₹1,825 to ₹1,850 apiece levels in the near term. He advised shareholders to hold the stock with a stop loss at ₹1,725, targeting ₹1,850 apiece levels in the short term.
For new investors, Vaibhav Kaushik advised waiting for a breakout above ₹1,780 apiece levels to consider buying. Alternatively, if the stock dips to ₹1,750 apiece levels, it can be bought for immediate targets of ₹1,780 and ₹1,720 apiece levels. He further added that shareholders can upgrade their trailing stop loss to ₹1,750 apiece levels once the stock breaks out at ₹1,780 levels on a closing basis.
In its Q1 results for 2023, HDFC Bank reported a standalone net profit of ₹11,951.7 crore, reflecting a 30% growth compared to the corresponding period in FY23. The bank’s net interest income increased by 21.10% from ₹19,481.40 crore to ₹23,599.1 crore from April to June 2023.
In conclusion, HDFC Bank’s share price has rebounded significantly following the release of its impressive Q1 results for 2023. Analysts are optimistic about the bank’s growth prospects, citing improvements in net interest income and margins as well as the potential to further enhance its CASA. While shareholders are advised to continue holding the stock, new investors can consider buying at specific price levels. The stock is projected to reach ₹1,850 apiece levels in the near term, supported by positive chart patterns and overall market sentiments.
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