HDFC Bank Stock Price Hits 52-Week Low Amidst Market Crash Today, Down 15% In Just 1 Week

HDFC Bank shares hit a new 52-week low value of Rs 1425.00 on Tuesday (January 23), amidst a bloodbath on Dalal Street where the two benchmark indices Sensex and Nifty 50 ended over 1% lower. Today, shares of HDFC Bank Ltd ended 3.45% lower at Rs 1427.60 per piece. The stock has a 52 Wk High and 52 Wk Low of 1,757.80 and 1,425.00 respectively. The country's largest private sector lender has a market cap of Rs 10,83,903.12 crore. In this year so far, HDFC Bank shares have fallen 16.06%.

The stock last touched its 52-week low level at Rs 1460.55 on October 26, 2023. The negative trend in HDFC Bank stock price first became evident this year, after the company reported its financial results for the quarter that ended December 2023 on January 16. In the third quarter, the bank's net profit rose nearly 34% year-on-year (YoY) to Rs 16,372.54 crore, and its Net interest income (NII) increased 24% YoY to Rs 28,471.34 crore.

Following the Q3FY24 results, the stock fell 10% last week. HDFC Bank has seen the market capitalization erode by Rs 1.9 trillion on a sharp sell-off led by foreign portfolio investors (FPIs).

The big correction in the banking major after the announcement of its Q3 results has unnerved many investors. In an exchange filing today, the lender informed that the Bank's Nomination and Remuneration Committee (NRC) has granted 4,29,400 equity stock options of face value of Re. 1/- ("options") each at the grant price of Rs. 1478.85 convertible into one equity share each of the Bank upon vesting and exercise in terms of the ESOP Master Scheme ESOS - Plan G - 2016.

HDFC Bank Q3FY24 results:

HDFC Bank said that its net profit for the third quarter of FY24 rose 34% (YoY) to Rs 16,372 crore. The quarter's net interest income (NII) was Rs 28,470 crore, a significant rise of 23.9% over the previous fiscal year's equivalent quarter's Rs 22,990 crore. Compared to the prior year, the bank's gross non-performing assets (NPA) grew marginally to 1.26% from 1.23%.

The total deposits of HDFC Bank surged significantly during the October-December FY24 quarter, rising by 27.7% to Rs 28.47 lakh crore from Rs 22.29 lakh crore during the same quarter the previous year. Current account and savings account deposits increased by 9.5% to Rs 5.79 lakh crore, while current account deposits reached Rs 2.58 lakh crore.

HDFC Bank Share Price Target

Sameer Bhise - Executive Director - JM Financial Ltd said, "HDFC Bank's 3QFY24 core-PPOP at INR 222bn (2.4% QoQ), missed our estimates (of Rs233bn) as NIMs (3.4%) remained flat QoQ at the relatively suppressed levels seen in 2QFY24. This, despite a) the impact of ICRR (which was a drag on NIMs in 2Q), excess liquidity build-up due to merger management not being there and b) LCR run down from 121% to 110% during the quarter.

We estimate core margins could have declined by >20bps QoQ for HDFC Bank which was a disappointment. PAT stood at INR 164bn (2.5% QoQ, ahead of our estimates of INR 152bn) which was aided lower effective tax rate during the quarter. Management alluded to continued competitive pressures on deposit growth given tight liquidity. Over the medium term, Mgmt. believes greater contribution of retail assets in the overall asset mix should aid margins to normalize to higher levels."

Brokerage CLSA has maintained its buy rating on the counter with a target of Rs 2,025 per share, Nuvama has downgraded the stock to 'hold' post Q3 earnings, while Financial Services firm Motilal Oswal has assigned a target of Rs 1950 to the Banking stock.

HDFC Bank Share Price Performance:

HDFC Bank shares have fallen 14.97% in the last one week. In this year so far, the stock has fallen 16.06%. The last one-year, 2-year, and 3-year returns from shares of HDFC Bank have fallen 14.65%, 6.12%, and 1.11 respectively.