Sharekhan Sees Multibagger Bank Stock Soaring Amid Strong Business Momentum, Buy

Sharekhan has recommended buy call to large cap bank stock, HDFC Bank and assigned buy call with target price of Rs 1920 apiece. If you buy HDFC Bank share now, you can get potential return of 15%. The stock gave return of 104% in last 3-years. Check details below:

HDFC Bank Stock Performance & Return: The stock's last trading price is Rs 1666.30 apiece on BSE with intraday gain of 0.74%. The stock's 52-week high price is Rs 1702.00 apiece and 52-week low price is Rs 1271.75 apiece, respectively. Its market capitalisation is Rs 9,29,752.54 crore. The large cap banking stock gave 15% return in last 6-months, 7% return in last 1-year, 15% return in last 2-years, and 104% return in last 3-years.

HDFC Bank Valuation: According to Sharekhan, "HDFC Bank reported strong business performance in Q4FY2023 in terms of loan growth as well as deposit growth. The trend remained healthy on a sequential basis as well. The stock is trading at a 30% discount to its long-term valuation multiple. The risk of de-rating on a standalone basis appears to be quite low, given that the business performance is holding up well. The stock is currently trading at 2.7x and 2.3x its FY2023E and FY2024E core ABV, respectively."

HDFC Bank About: HDFC Bank is the largest private sector bank with a pan-India presence. The bank has been designated by the RBI as a domestic systemically important bank (D-SIB), underlining its importance in the financial system. HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side.

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