Is it wise to buy HDFC Bank shares before Q4 results 2024?

  • HDFC Bank shares witnessed a sharp upside move last week after a better-than-expected Q4FY24 business update

Asit Manohar
Updated8 Apr 2024, 07:16 AM IST
Q4 results 2024: HDFC Bank results for Q4FY24 will be declared on 20th April 2024.
Q4 results 2024: HDFC Bank results for Q4FY24 will be declared on 20th April 2024.(Photo: Reuters)

HDFC Bank shares witnessed strong buying interest in the week gone by. In one week time, HDFC Bank share price appreciated to the tune of 6 percent, which triggered speculations about the large-cap banking stock coming out of the base-building mode after the merger with HDFC Ltd. HDFC Bank is expected to declare its Q4 results 2024 on 20th April 2024. According to stock market experts, HDFC Bank share price witnessed a sharp upside movement last week after the private lender reported a better-than-expected Q4FY24 business update. They said that the stock is facing a strong hurdle at 1,730 apiece level and on breaching this resistance, one can expect strong upside movement in HDFC Bank shares.

Triggers for HDFC Bank shares

Speaking on the reason for the rise in HDFC Bank shares, Shreyansh V Shah, Research Analyst at StoxBox said, “The recent fourth-quarter business update surprised investors on the upside amid early signs of merger synergies. The encouraging deposit performance, especially on the retail deposits front, was the key trigger fueling optimism in the bank’s performance. Amidst concerns over the bank’s LDR, HDFC Bank aims to improve the loan-deposit ratio (as loan growth would be lower than deposit growth) and the focus is on incremental Loan-Deposit ratio. In addition, with the bank’s focus on branch expansion in semi-urban and rural areas, we feel the bank is poised to perform better in the forthcoming quarters.”

"Due to the bank's vast branch network, its subsidiaries can access large cross-selling opportunities, thus indirectly supporting the topline growth. In the last five years, earnings have grown at 17% CAGR while market cap growth is around 9% which implies a significant opportunity for the HDFC Bank to grow in the long term," the StoxBox expert added.

HDFC Bank share price target

Expecting further upside in HDFC Bank shares, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, "HDFC Bank shares have given a weekly breakout at 1,480 apiece levels and the banking stock is looking bullish on chart pattern after this fresh breakout. Those who have HDFC Bank shares in their portfolio are advised to hold the scrip for the immediate target of 1,620 maintaining stop loss at 1,440 per share level. Once HDFC Bank share price breaches the 1620 mark decisively, we can expect this share to touch the 1,710 to 1,720 mark."

The Anand Rathi expert maintained that HDFC Bank share price has tried to come out of the base-building mode earlier as well but it has failed to breach the strong hurdle placed at 1,730 per share levels. If the large-cap banking stock gives a breakout above 1,730 per share on a weekly closing basis, then the stock may become highly bullish.

HDFC Bank Q4FY24 business update

HDFC Bank reported 55.4% year-on-year (YoY) growth in gross advances to 25.08 lakh crore as of March 31, 2024, from 16.14 lakh crore as of March 31, 2023. On a sequential basis, the advances of the largest private sector bank in India, grew 1.6% from 24.69 lakh crore in December 2023.

Grossing up for transfers through inter-bank participation certificates and bills rediscounted, the bank’s advances grew by around 53.8% over March 31, 2023, and around 1.9% ( 472 billion) over December 31, 2023, HDFC Bank said in a BSE filing on Thursday last week.

HDFC Q4 results 2024 date

HDFC Bank has declared that the board of directors of the private lender will consider and approve quarterly results for the Q4FY24 on 20th April 2024. India's largest private lender announced the HDFC Bank Q4 results 2024 through an exchange filing.

“We wish to inform you that the meeting of the Board of Directors of HDFC Bank Limited will be held on Saturday, April 20, 2024, to inter-alia consider the Audited financial results for the year ended March 31, 2024, along with the consolidated accounts for the year ended March 31, 2024," HDFC Bank informed Indian stock market exchanges in an exchange filing.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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First Published:8 Apr 2024, 07:16 AM IST
HomeMarketsStock MarketsIs it wise to buy HDFC Bank shares before Q4 results 2024?

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