HDFC Bank shares climbed 1.24% in early trade on Monday after the bank reported strong Q4 results for FY2024-25. The stock, which closed at ₹1,906 on Friday, opened higher at ₹1,924 on April 21 and touched an intraday high of ₹1,950. The low for the day stood at ₹1,910.
The rise in stock price came after the bank announced a 6.7% year-on-year increase in net profit, reaching ₹17,620 crore in Q4. Net Interest Income (NII) also saw a 10% rise to ₹32,070 crore. In addition, the bank declared a dividend of ₹22 per share for its shareholders.
HDFC Bank Q4 Results – Key Financial Highlights (Q4FY25):
- Net Profit: ₹17,620 crore (up 6.7% YoY)
- Net Interest Income (NII): ₹32,070 crore (up 10% YoY)
- Net Interest Margin (NIM): 3.54% on total assets; 3.73% on interest-earning assets
- Net Revenue: ₹44,090 crore (down from ₹47,240 crore YoY)
- Other Income: ₹12,030 crore
- Fee and Commission Income: ₹8,530 crore (up from ₹7,990 crore)
- Gross NPAs: 1.33% (up from 1.24% YoY, down from 1.42% in Dec 2024)
- Net NPAs: 0.43%
- Gross Advances: ₹26.43 lakh crore (5.4% YoY growth)
- Capital Adequacy Ratio (CAR): 19.6% (up from 18.8%)
HDFC Bank Share Target Price & Brokerages Stay Positive
Brokerages responded positively to HDFC Bank’s performance:
- Motilal Oswal: Reiterated a ‘Buy’ rating with a target price of ₹2,200, expecting a 15.4% upside. They highlighted improvement in core margins and strong loan growth expectations of 10% in FY26 and 13% in FY27.
- Nuvama Institutional Equities: Upgraded target to ₹2,195 from ₹1,950, praising asset quality and improving net interest margin.
- Jefferies: Raised target from ₹2,120 to ₹2,340, maintaining a ‘Buy’ recommendation.
- CLSA: Suggested a revised target of ₹2,200, up from ₹1,785.
- Macquarie: Rated the stock as ‘Outperform’ with a target of ₹2,300.
- Nirmal Bang: Set a new target of ₹2,236, citing strong asset quality, growth potential, and merger synergies.
- IIFL Securities: Gave a target of ₹2,160 based on strong return ratios and long-term market share gain potential.
Analysts believe that HDFC Bank is well-positioned for future growth. The bank is managing to control bad loans (slippages), maintain healthy provisions (₹25,900 crore or 1% of loans), and improve its cost-efficiency.
The gradual lowering of high-cost borrowings, better margins, and steady execution are expected to help improve return ratios. For FY27, HDFC Bank is expected to deliver a Return on Assets (RoA) of 1.9% and Return on Equity (RoE) of 14.6%.
Summary
HDFC Bank has delivered a steady set of numbers in Q4FY25, with improvement in margins, strong profit growth, and healthy asset quality. With several brokerages raising their target prices and maintaining a ‘Buy’ call, the stock may see more upward movement in the coming days. Investors are keeping an eye on further developments and the bank’s strategy execution in FY26 and beyond.