HDFC Bank has made headlines by becoming the third company in India to achieve a market capitalization exceeding ₹15 lakh crore. This remarkable milestone comes as the bank’s stock has soared recently, hitting a record high. On April 22, HDFC Bank shares rose over 2%, reaching ₹1,970.65 before closing at ₹1,961.90, which marks a 1.78% increase. This positive trend has lasted for six consecutive sessions, amassing an impressive 11% gain.
HDFC Bank’s Market Position
With its current market capitalization of ₹15.01 lakh crore, HDFC Bank now ranks as India’s second-largest company, trailing only Reliance Industries, which boasts an m-cap of ₹17.5 lakh crore. TCS follows in third place, having previously surpassed the ₹15 lakh crore threshold.
Steady Growth in Share Price
The upward trajectory of HDFC Bank’s stock price has been evident for several months:
- February: +2%
- March: +6%
- April (up to the 22nd): +7%
Overall, the stock has appreciated by 11% year-to-date, reflecting strong investor confidence.
Factors Behind the Surge
After a prolonged period of underperformance, HDFC Bank’s recent resurgence is attributed to a positive growth outlook. The bank’s Q4 results for fiscal year 2025 (Q4FY25) exceeded expectations, igniting investor enthusiasm.
According to Avinash Gorakshakar, head of research at Profitmart Securities, "Investors are reacting positively to HDFC Bank’s Q4 performance, which outperformed general market expectations for banks. This improvement in results has rekindled market confidence."
Moreover, the anticipated public offering of HDB Financial Services, a subsidiary of HDFC Bank, may unveil additional value for investors.
Financial Performance Highlights
In Q4 FY25, HDFC Bank reported a net profit of ₹17,616 crore, marking a 6.7% year-over-year increase. Its net interest income (NII) also saw a healthy rise of 10.3% YoY, totaling ₹32,070 crore. The net interest margin (NIM) stood at 3.54% on total assets, with 3.73% based on interest-earning assets.
Projections for HDFC Bank Stock
Market analysts, including Gorakshakar, suggest that if HDFC Bank’s stock surpasses the ₹2,000 mark, it could potentially climb further to the ₹2,200–2,300 range, as many institutional investors see it as a strong contender.
Several brokerage firms have maintained positive recommendations post-Q4 results. Motilal Oswal has set a target price of ₹2,200, while JM Financial has raised its target from ₹1,950 to ₹2,130.
Technical Analysis Insights
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, notes that the stock’s performance above ₹1,925 indicates bullish momentum. He recommends viewing the ₹1,950–1,970 range as a potential buying opportunity, with an upside target of ₹2,065. For risk management, he advises a stop-loss set below ₹1,910 on a daily basis.
Meanwhile, Mandar Bhojane, an equity research analyst at Choice Broking, encourages traders to consider accumulating shares in the ₹1,900–₹1,880 range for a favorable risk-reward scenario. He also suggests maintaining a stop-loss below ₹1,840 for effective risk management.
Conclusion
With the stock trading above its 20, 50, 100, and 200-day moving averages, HDFC Bank appears well-positioned for continued growth. The Relative Strength Index (RSI) is currently at 74.97, indicating strong momentum, while a positive crossover in the Stochastic RSI suggests renewed buying interest. Short-term traders may want to monitor the ₹2,000 resistance level, where partial profit-taking could be wise.
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