Brokers on HDFC Bank
Bernstein: Maintain Outperform on Bank, target price at Rs 2300/Sh
Citi: Maintain Buy on Bank, target price at Rs 2080/Sh
MOSL: Maintain Buy on Bank, target price at Rs 2050/Sh
BofA: Maintain Buy on Bank, target price at Rs 2020/Sh
MS: Maintain Overweight on Bank, target price at Rs 1965/Sh
Nuvama: Maintain Buy on Bank, target price at Rs 1950/Sh
CLSA: Maintain Hold on Bank, target price at Rs 1785/Sh
Investec: Maintain Hold on Bank, target price at Rs 1650/Sh
one thing that i noticed in hdfc bank they have opened many branches after covid and this normally come as opex or operating expenditure,and if branches increase cost to income increases which happened in last few years.With cost to income comes to prior levels like below 40 aum will give growth and productivity will also increase
Disclosure:invested
I was wondering why we need more branches when there is increased adoption of online banking. Then I found the following article:
Absolutely right approach for investing in beaten down large cap stocks.
P/B of HDFC Bank has slowly moved towards 2.9 in May 2025 from 2.1 in September 2023. Three year Median P/B is about 3.0 and it is likely that, it might reach that stage as well.
For proven large cap businesses, with sound managements and long term story, an investor has to patiently wait for the Right Price and then invest with conviction irrespective of negative stories floating around and hold for a decent period of 2-3 years.
Once large cap is overvalued, you can rotate the funds to Next beaten down large cap stock and Continue the same.
This approach can also generate 15%-18% CAGR or even higher as per my analysis of my own investment journey. Only thing is that, I also sometimes do not invest in such beaten down stocks, other wise back testing shows that it is possible to generate decent 3% to 7% higher returns than NIFTY by investing simply in large caps.
Various large caps which I can think of could be ITC (2020-2024 / P/E from 15 to 30), Nestle (2018 On wards till 2021 / P/E from 59 to 89), Coal India (2022-2024 / P/B from 2.2 to 5.5 ) which fall in this category. Though it is not possible to Enter and Exit in these stocks precisely but still an Investor could have made very good gains in these large caps in short period. I missed Nestle but have benefited from ITC and Coal India.
Disc: Holding HDFC Bank since 2011, but have booked partial profits and re-entered from time to time.
A FIR has been lodged against MD of HDFC BANK yesterday by Lilavati hospital trust, is this a black mark on management trade practices.
HDFC has issued a detailed rebuttal to the allegations in their press release.
HDFC Bank considers Issuing Bonus Shares in Jul 19 meeting
676fc53e-de99-4002-b66b-c343b82872e7.pdf (237.8 KB)
I have mixed feelings about the bonus announcement. How does it help the business? What are the pros and cons of this issue? Instead of increasing the equity base, they could have tried to raise money (theoretically speaking) at a higher book value (maybe). What are the community’s thoughts around this?
Bonus help in better liquidity, many small retail investor associate stock price with expensive/cheap valuation
Also someone who wants to do Stock SIP with 5k, its difficult for them to buy HDFC at 2000
Raising Capital/Shareholder dilution is inefficient for a bank who is doing 16-18% ROE but growing less than 10%
Bonus Shares 1:1 announced
46a7103b1f654ca79bf1770c9b27e3be.pdf (1022.7 KB)
Will the rejig in Bank nifty really affect ICICI & HDFC in the short term?
If yes, then how much movement can realistically be expeced on the down side?
Do bonus shares help in anyway other than improve liquidity in share traded volumes?
If you want to sell a part of your holdings in a company, it effectively helps defer capital gains tax - the pre-bonus shares which are sold first attract lesser capital gains tax while the bonus shares, when they are sold (presumably much later) will attract much more tax.
It will be good if in the future, tax on buybacks are reduced, especially the open market offers so companies can buyback shares for rewarding shareholders in a tax friendly manner. Bonus issue doesn’t seem to add value to our shareholding.
can you expand on this please? on the capital gains tax part
Update: rajidse has kindly pointed out that GoI has effectively disallowed this tax deferral strategy since 2022. Hence my previous reply is of academic interest only (and if you are interested you can read about details of this tax saving strategy which was available only prior to 2022 in the above link).
This technique is called as Bonus stripping. It was allowed straight way upto Fy 2022 .After 2022 ,loss under bonus stripping is allowed under certain conditions only. Pl visit Clear Tax site or income tax site for details
Thank you for pointing this out - did not know about it. Will edit my reply also accordingly.
Actually, there was no need to delete (if I remember it correctly). I think bonus stripping comes into picture only when shares are purchased solely with the intention of selling ex-bonus and booking capital loss. Typically, shares purchased after a bonus is announced but before the record date would come under the purview of bonus stripping. But shareholders holding shares for a long time and wanting to see their holdings partly, or management wanting to partly sell their ESOPs would still benefit by selling after the bonus issue. Their sale cannot be called as bonus stripping since the fact of bonus was not known when the shares were acquired.
