Is it wise to buy HDFC Bank shares before Q4 results 2024?
HDFC Bank share price appreciated to the tune of 6 percent, which triggered speculations about the large-cap banking stock coming out of the base-building mode after the merger with HDFC Ltd. HDFC Bank is expected to declare its Q4 results 2024 on 20th April 2024.
According to stock market experts, HDFC Bank share price witnessed a sharp upside movement last week after the private lender reported a better-than-expected Q4FY24 business update. They said that the stock is facing a strong hurdle at ₹1,730 apiece level and on breaching this resistance, one can expect strong upside movement in HDFC Bank shares.
Speaking on the reason for the rise in HDFC Bank shares, Shreyansh V Shah, Research Analyst at StoxBox said, “The recent fourth-quarter business update surprised investors on the upside amid early signs of merger synergies. The encouraging deposit performance, especially on the retail deposits front, was the key trigger fueling optimism in the bank’s performance.
Amidst concerns over the bank’s LDR, HDFC Bank aims to improve the loan-deposit ratio (as loan growth would be lower than deposit growth) and the focus is on incremental Loan-Deposit ratio. In addition, with the bank’s focus on branch expansion in semi-urban and rural areas, we feel the bank is poised to perform better in the forthcoming quarters." "Due to the bank's vast branch network, its subsidiaries can access large cross-selling opportunities, thus indirectly supporting the topline growth.
In the last five years, earnings have grown at 17% CAGR while market cap growth is around 9% which implies a significant opportunity for the HDFC Bank to grow in the long term," the StoxBox expert added. Expecting further upside in HDFC Bank shares, Ganesh Dongre,
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