Let’s explore the HDFC Bank Share Price Targets for 2024, 2025 to 2030. For a comprehensive analysis of HDFC Bank’s performance and insights into its share price trends, investors can leverage integrated tools for both fundamental and technical analysis.
Accessing the company profile, latest news, and events on Money Laid can further enrich the understanding of HDFC Bank’s dynamics, facilitating informed investment decisions. Dive into detailed analysis of HDFC Bank’s stock price to embark on a rewarding investment journey.
What is HDFC Bank Ltd.?
HDFC Bank Ltd., headquartered in Mumbai, Maharashtra, is a leading Indian multinational banking and financial services corporation. As the largest private sector bank in India by assets and market capitalization, it stands out for its robust presence and extensive offerings. Established in 1994 as a subsidiary of the Housing Development Finance Corporation (HDFC), a premier housing finance company in India, HDFC Bank underwent a reverse merger with HDFC Ltd. in 2023.
The bank operates through various segments to cater to diverse customer needs. Its Wholesale Banking segment targets institutional clients, providing a range of services such as working capital loans, term loans, project finance, custodial services, correspondent banking, and cash management services.
On the other hand, the retail segment serves individual borrowers, Non-Resident Indians (NRIs), and micro and small-sized businesses with offerings like auto loans, personal loans, retail business banking, business loans, loan against securities, and home loans.
Managing liquidity and interest rate risks falls under the purview of HDFC Bank’s treasury segment, which also offers solutions for non-residents, deals in government securities, and provides integrated trade and treasury solutions for customers. With a vast network encompassing over 6,000 branches and 28,000 ATMs across India, HDFC Bank ensures widespread accessibility to its services.
Beyond India, HDFC Bank extends its reach to 19 other countries, including prominent locations such as the United Kingdom, the United States, Singapore, and Dubai.
Company Profile
| Company Type | Public |
| Traded as | NSE: HDFCBANK BSE: 500180 NYSE: HDB (ADS) |
| ISIN | INE040A01034 |
| Industry | Financial services |
| Founded | August 1994 (29 years ago) |
| Headquarters | Mumbai, Maharashtra, India |
| Area Served | India |
| Chairman | Atanu Chakraborty |
| CEO | Sashidhar Jagdishan |
| Products | Consumer, Commercial, Private & Investment banking Insurance Credit cards Mortgage loans Private equity Investment, Asset, Risk & Wealth management Mutual, Index & Exchange-traded funds Stockbroking |
| Revenue | ₹2.05 lakh crore (US$26 billion) in 2023 |
| Operating Income | ₹615 billion (US$7.7 billion) in 2023 |
| Net Income | ₹459.97 billion (US$5.8 billion) in 2023 |
| Total Assets | ₹25.3 lakh crore (US$320 billion) in 2023 |
| Total Equity | ₹2.85 lakh crore (US$36 billion) in 2023 |
| Number of Employees | 177,000 (as of 1 July 2023) |
| Subsidiaries | HDFC Life HDFC ERGO HDFC Securities HDFC Mutual Fund HDB Financial Services HDFC Asset Management Company HDFC Credila Financial Services |
| Website | hdfcbank.com |
HDFC Bank Ltd. Fundamentals
| Market Cap (Cr) | 1176419.60 |
| CASA % | 44.39 |
| No. of Shares (Cr) | 759.69 |
| P/E | 20.88 |
| P/B | 2.79 |
| Face Value | 1 |
| Div. Yield % | 1.23 |
| Book Value (TTM) | 555.88 |
| Net Interest Income (Cr) | 86842.22 |
| Cost to Income % | 40.36 |
| Promoter Holding % | 0 |
| EPS (TTM) | 74.17 |
| CAR % | 19.26 |
| ROE % | 17 |
| ROCE % | 15.73 |
| Profit Growth % | 19.34 |
| Year | HDFC Bank Share Price Target 2024 |
|---|---|
| 2024 | ₹1,925 – ₹2,070 |
HDFC Bank’s 2024 share price target is estimated to be between ₹1,925 and ₹2,070 by several market experts like Motilal Oswal, JR Financials, and KR Choksey. This prediction is around 30% higher than the current price.
This optimism stems from HDFC Bank’s plan to expand its branch network by 1,000 in 2024, boosting its reach.
| Year | HDFC Bank Share Price Target 2025 |
|---|---|
| 2025 | ₹2,800- ₹3,070 |
Our Analysts offer a range, with estimates around ₹2,800- ₹3,070 to potentially higher figures based on market performance.
This target reflects HDFC Bank’s long-term potential, but factors like economic conditions and the bank’s ability to navigate them will play a role. While the bank boasts a strong CASA ratio and profitability, its 2023 performance has caused some caution.
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| Year | HDFC Bank Share Price Target 2030 |
|---|---|
| 2030 | ₹4,500 – ₹5,000 |
Our Analysts have projected a range of ₹4,500 – ₹5,000 for 2030, reflecting the long-term potential.
| Year | HDFC Bank Share Price Target 2040 |
|---|---|
| 2040 | ₹8,500 – ₹9,500 |
Analysts tentatively suggest a range of ₹8,500 – ₹9,500 for HDFC Bank’s 2040 share price.
| Year | HDFC Bank Share Price Target 2025 |
|---|---|
| 2025 | ₹15,000 – ₹20,070 |
Our analysts offer a range of ₹15,000 – ₹20,070 for HDFC Bank’s 2050 price. We assumes the bank remains a leader, adapts exceptionally well to changing environments, and capitalizes on unforeseen growth opportunities in the Indian economy.
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The Indian banking sector is experiencing rapid growth thanks to increased infrastructure spending, favorable government policies, rising disposable incomes, and a surge in consumerism. This boom has led to a surge in demand for banking services across India. However, whether it’s the right time to invest in banking stocks, particularly HDFC Bank, warrants a closer look and a detailed analysis.
HDFC Bank, like many banking companies, primarily earns its income from the interest earned on loans provided to individuals and corporates. In the latest financial year, HDFC Bank reported a revenue of Rs 1,61,585.54 Cr, showing a decent growth of 12.07% over the last three years.
Regarding advances, HDFC Bank has seen a Year-on-Year (YOY) rise of 16.93%, with a 3-year advance growth standing at 17.22%.
Currently, HDFC Bank boasts a CASA ratio of 44.39%, with an overall cost of liability standing at 3.58%. The total deposits from these accounts amount to Rs 18,83,394.65 Cr.
HDFC Bank maintains a healthy ROA track record, standing at 1.95%.
Efficient management of its asset portfolio is evident, with Gross NPA and Net NPA at 1.12% and 0.27% respectively in the latest financial year.
Another crucial measure of the bank’s financial health is the provisioning coverage ratio, which has seen a negative YoY change of -20.86%, indicating a decrease from the previous year.
Non-interest income, or other incomes, play a vital role for banks, providing a regular income source with minimal risk. HDFC Bank’s other income has surged and currently stands at Rs 31,214.83 Cr.
HDFC Bank boasts a healthy Capital Adequacy Ratio of 19.26.
A significant metric providing insights into the bank’s valuation is the Price-to-Book (P/B) ratio. Currently, HDFC Bank is trading at a P/B of 2.78, compared to its historical average of 3.53.
Share Price: The current share price of HDFC Bank is Rs 1,548.55. Utilizing valuation calculators can help determine whether HDFC Bank’s share price is undervalued or overvalued.
Strengths
- Consistent Healthy ROA: The bank has maintained a robust Return on Assets (ROA) of 1.93% over the past three years.
- Strong ROE Track Record: With a commendable Return on Equity (ROE) of 16.76% over the last three years, the company demonstrates financial prowess.
- Steady NIM: The company has consistently upheld a Net Interest Margin (NIM) of 3.74% for the past three years.
- Effective NPA Management: Proactively managing Non-Performing Assets (NPAs), the bank maintains an impressively low Average NET NPA of 0.33% over the last three years.
- High CASA Ratio: Customer deposits are stable, with Current Account Savings Account (CASA) comprising 44.39% of total deposits, indicating a strong customer base.
- Adequate Capital Adequacy: With a robust Capital Adequacy Ratio of 19.26%, the bank is well-positioned to meet regulatory requirements and support future growth.
- Profit Growth: The company has demonstrated substantial profit growth, recording an impressive 18.88% increase over the past three years
Weakness
- Don’t Have A Serious Weakness Yet
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HDFC Bank Ltd. Financials
In the last quarter, HDFC BANK LTD. recorded total revenue of 1.15 trillion INR, marking a 6.92% increase compared to the previous quarter. The net income for Q3 2023 amounted to 172.58 billion INR.
Shreyansh V Shah from StoxBox expressed confidence amidst concerns over HDFC Bank’s Loan-to-Deposit Ratio (LDR), stating the bank’s commitment to improving this ratio by focusing on incremental Loan-Deposit ratio, particularly with the anticipation of lower loan growth compared to deposit growth. Moreover, he highlighted the bank’s strategic emphasis on expanding branches in semi-urban and rural areas, indicating a promising outlook for future performance.
Shah further noted that HDFC Bank’s extensive branch network provides ample cross-selling opportunities for its subsidiaries, indirectly bolstering overall revenue growth.
Over the past five years, earnings have demonstrated a Compound Annual Growth Rate (CAGR) of 17%, while market capitalization has grown at a slower pace of only 9%, suggesting substantial long-term growth potential for HDFC Bank.
According to the StoxBox expert, investors with a long-term horizon could consider accumulating shares of both SBI and HDFC Bank.
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FAQs
Does HDFC Bank Ltd. Pay Dividends?
Yes, HDFC Bank Ltd. pays dividends annually. The last dividend per share was ₹ 19.00 and was paid on September 10, 2023. The current Dividend Yield (TTM) is 1.23%.
Expected targeted price for HDFC Bank Ltd. is ₹2800 to ₹3070 in 2025.
According to our projection, HDFC Bank share price stands between ₹4,500 – ₹5,000 in 2030.
Is HDFC Bank private or government?
HDFC Bank is a Private Sector Bank.
