- HDFC Bank‘s net income for the fourth quarter reached 176.2 billion rupees, a 6.7% increase year-over-year, surpassing the estimate of 170.21 billion rupees.
- The bank’s gross non-performing assets improved, decreasing to 1.33% compared to 1.42% in the previous quarter, beating the estimated 1.39%.
- Provisions were reported at 31.9 billion rupees, a slight increase of 1.3% quarter-over-quarter, and came below the estimated 32.41 billion rupees.
- Operating profit declined by 9.3% year-over-year, amounting to 265.4 billion rupees, which still exceeded the estimate of 259.18 billion rupees.
- Interest income increased by 8.4% year-over-year to reach 774.6 billion rupees, slightly topping the estimate of 767.39 billion rupees.
- The bank’s interest expense rose by 7.1% year-over-year, amounting to 453.9 billion rupees.
- A dividend of 22 rupees per share was declared.
- The stock has strong support from analysts, with 43 buy recommendations, 5 hold ratings, and no sell recommendations.
HDFC Bank on Smartkarma
Analysts on Smartkarma are offering diverse insights into HDFC Bank. Nico Rosti‘s bearish stance suggests a possible short-term pullback despite the stock’s resilience and positive long-term outlook. On the bullish side, Ankit Agrawal, CFA, highlights HDFC Bank‘s robust deposit growth and strong fundamentals in a tough environment, positioning it well for future growth. Gaudenz Schneider proposes a long-short strategy with HDFC Bank, ICICI Bank, and State Bank of India, outperforming the Nifty Bank Index, supported by strong fundamentals and technical factors. Lastly, Pranav Bhavsar provides a bearish outlook on HDFC Bank in the context of the broader banking sector, except for a few select names.
In summary, Smartkarma’s analysts present a nuanced view of HDFC Bank, highlighting varying sentiments from bearish short-term concerns to bullish long-term advantages, along with strategic trading opportunities and insights into the bank’s performance amidst industry challenges. Investors can benefit from this array of perspectives to make informed decisions regarding HDFC Bank‘s stock.
A look at HDFC Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking at the Smartkarma Smart Scores for HDFC Bank, the overall outlook appears promising. With a solid Dividend score of 4 and Momentum score of 4, HDFC Bank shows strength in providing returns to its shareholders and maintaining a positive stock performance trend. Additionally, scoring a respectable 3 in Value, Growth, and Resilience, the bank demonstrates a balanced approach to financial stability, future growth potential, and resilience against market fluctuations.
HDFC Bank Ltd., known for its wide range of services in the global corporate sector, offers corporate banking, custodial services, and actively participates in treasury and capital markets. The bank’s offerings include project advisory services, Global Deposit Receipts, Euro currency loans, and Euro currency bonds, showcasing a comprehensive suite of financial products to cater to diverse client needs.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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