Shares of the largest private sector Bank in India opened its trading session at Rs 1,720 and currently trade at Rs 1,666. The scrip has seen a downward movement of about 2 percent as compared to the previous closing price of Rs 1,692.45.
Such movements are observed after the Bank announced its annual results for the FY22-23 couple of days back. The markets have shown bearish sentiments towards the stock but the results have been a mixture of ups and downs which is stated later.
HDFC Bank, the largest private-sector bank in India, offers banking services such as private banking, deposits, insurance, card services, mobile banking, and other financial services. It caters to various sectors including energy, financial services, healthcare, consumer products, and services, e-commerce, manufacturing, infrastructure, industrials, material, and resources sectors.
Having a quick walkthrough of the financials, the company has witnessed opposing movements in the total income generated and net profit figures. The total income has moved from Rs 54,123 crores during Q3 to Rs 57,159 crores in Q4. Net profits, on the other end, have shifted down from Rs 12,735 crores in Q3 to Rs 12,634 crores in Q4.
The profitability ratios of the company have been able to show marginal growth as far as ROE and ROCE are concerned. ROE numbers shifted from 16.5 percent in FY20-21 to 16.7 percent in FY21-22. Moreover, ROCE moved from 13.83 percent in FY20-21 to 14.05 percent in FY21-22.
Going ahead with some Bank-specific metrics, the company has been able to perform well with the net NPA ratio reducing from 0.33 percent in Q3 to 0.27 percent in Q4. Moreover, the capital adequacy ratio of the company has improved from 17.66 percent in Q3 to 19.26 percent in Q4.
ICICI Direct has given a ‘Buy’ tag to the Bank with a target price of Rs 1,970 indicating an upside of around 18 percent compared to the current price levels.
As per the data available for the March quarter, promoters of the company hold a 25.59 percent stake. FIIs have increased their stake from 32.08 percent in Q3 to 32.22 percent in Q4.
Written by Amit Madnani
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