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HDFC Bank Hits New High, Market Cap Surpasses Rs 8 Lakh Crore For The First Time

By Staff

On Wednesday, shares of HDFC Bank hit a new all-time high for the second consecutive day, helping it cross the valuation of Rs 8 lakh crore, first Indian bank and the third company listed on Indian stock exchanges to do so.

The stock rose to above 1% to a high of Rs 1,464.40 per share on Wednesday. It has surged nearly 14% this year.

HDFC Bank Hits New High, Market Cap Surpasses Rs 8 Lakh Crore For The First Time

The other two companies to surpass the level have been Tata Consultancy Services (TCS) and Reliance Industries Limited (RIL), which currently hold the valuation of Rs 13.33 lakh crore and Rs 10.22 lakh crore, respectively.

While the current general optimism in the stock markets supported the surge in HDFC Bank's share price, brokerage call also aided gains. On Tuesday, research firm CLSA raised its price target on the stock from Rs 1,525 to Rs 1,700 per share while retaining the "buy" rating. It said that the macro-environment has improved after lockdown, adding that the better use of data analytics is leading to lower retail stress against PAT (Profit After Tax) cycles.

"The bank's CEO transition has been smooth and the bank continues to work on its five-pillar strategy to drive growth targeting newer geographies or ecosystems and the bank is redefining systems or processes, hence the medium-term Opex efficiency still has room to improve. With lower asset quality risk, we increase our target price from Rs 1,525 to Rs 1,700," CLSA said.

After the lender reported an 18% year-on-year increase in net profit for the September-ended quarter, ICICI Direct said that it favours HDFC Bank "for its resilient asset quality, consistent performance across cycles, best-in-class cost-efficiency ratios and high capital base".

Read more about: hdfc bank
Story first published: Wednesday, November 25, 2020, 10:26 [IST]
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