While earnings by the country s biggest private sector lender remained a concern, global brokerage CLSA has reiterated its ‘buy’ rating on the stock with a target of ₹2,025 per share, implying an upside of almost 38 percent.
Shares of HDFC Bank crashed over 7% to Rs 1,560 on Wednesday following its Q3 results. Despite a 34% uptick in net profit, investors were unimpressed by loan growth and margins. Top brokerages red-flagged loan growth and lower liquidity coverage ratio (LCR) while maintaining their ratings. HDFC Bank reported a good set of numbers with net profit rising 34% YoY to Rs 16,372.54 crore. Net interest income (NII) rose 24% YoY to Rs 28,471.34 crore. CLSA maintained a buy view, Morgan Stanley remains overweight, Kotak Equities retained buy, and Nuvama downgraded to hold.
Banking and financial stocks bled out on Wednesday with both the Nifty Bank index and the Nifty Financial Services index down over 2.5 percent each post HDFC Bank December quarter results, announced yesterday.
All 12 Bank Nifty names were in the red. Other than HDFC Bank s disappointing Q3 show, cautious outlook for private banks also hit investor sentiment, leading to sharp selling in the banking pack