HDFC Bank share price slipped in early trade on Monday after the private loan provider reported strong very first quarter revenues recently.
HDFC Rely On July 16 reported a 20.9% on-year jump in combined net earnings to Rs 9,579 crore for the quarter ended 30 June 2022.
On the other hand, Net interest income (NII) stood at Rs 19,481.40 crore, up 14.5 per cent on-year.
HDFC Bank shares were pricing estimate at Rs 1,357.95, down Rs 5.90 or 0.43 percent on the BSE intraday.
Up until now this year, the stock has plunged over 11 per cent, underperforming even benchmark Nifty 50.
Analysts stay bullish on the stock and see up to 32% possible rally going forward.
According to experts at Edelweiss Securities, HDFC Bank's Q1FY23 was strong with core PPOP growth of 15% YoY/2% QoQ, 2% higher than their estimate, driven by lower opex.
PAT grew 19% YoY/ decreased 9% QoQ, 3% lower than their price quote due to greater trading loss of Rs 13bn.
It preserves purchase call on HDFC Bank stock with a target rate of Rs 1,730 per share.
Analysts at Sharekhan think that HDFC Bank is on a sped up growth path with strong advances development,...
... led by little and retail and medium company segments in addition to healthy low-cost deposit mobilisation.
"The bank's continuous building up of its digital abilities and franchise network is most likely to bode well for development going ahead", they said.
The lending institution is well-capitalised and has the capability to handle asset quality across cycles and...
... deliver exceptional return ratios irrespective of financial cycles and gain opportunities from a revival in the economy going on, they added.
"Maintain buy score with a the same price target of Rs 1,800," the brokerage said.
According to experts at the domestic brokerage house, HDFC Bank saw a great quarter with core earnings beating price quotes led by better NII and other income (leaving out treasury).
NIM was greater by 5 basis points due to exceptional yields driven by strong sequential retail credit development of 5 percent.
Asset quality saw a blip due to greater slippages of which 25 percent were attributable to OTR and agriculture, although healings were higher," they stated.