HDFC Share Price Target 2022, 2023, 2025, 2030
HDFC Share Price Target 2022, 2025, 2030
HDFC Bank Ltd. ( HDFC ) is one of India’s largest financial institutions, serving individuals and businesses across the country. The company offers a wide range of products and services, including share brokerage, mutual funds, insurance, and banking. In this article, we will explore the company’s share price target for 2022, 2025, and 2030. We will also provide a brief overview of the company’s history and operations. Finally, we will analyze the prospects for the company in light of its current market conditions.
HDFC Company Details
HDFC Bank Limited is one of the leading financial institutions in India with a nationwide network of over 1,500 branches and over 20,000 ATMs. The company offers a wide range of products and services including consumer and small business loans, insurance, mutual funds, and other banking products. HDFC Bank’s primary focus is on serving the needs and interests of medium to large businesses in India.
HDFC Bank was founded in 1892 and is headquartered in Mumbai, India. The company has a BSE listing with a market capitalization of Rs 1,269.401 billion as of March 24, 2017. HDFC Bank has been consistently ranked among the top 10 banks in India by various rating agencies. In 2016, HDFC Bank was ranked fifth overall by Forbes ‘India’s Best Banks list.
Investors are bullish on HDFC Bank Ltd., with the stock trading at an average price-to-book (P/B) ratio of 2.4x as of March 2017. The bank’s tax efficiency has also been cited as a key driver for investor sentiment; analysts at CLSA note that HDFC Bank leads its industry when it comes to effective tax rates (ETR). ETR stands at 25% for the fiscal year ended March 2017 as against 26% for ICICI Prudential Life Insurance Co Ltd., 24% for State Bank of India Ltd., 23% for Axis Mutual Fund Limited, 22% for public sector banks (PSBs)
HDFC Company History
HDFC Bank Ltd. (the “Company”) is an Indian financial services company headquartered in Mumbai, Maharashtra. It was founded on 18 October 1934 as the successor to the Imperial Bank of India, which had been nationalized by the British government in 1932. The Company is a public sector bank with a significant presence in the segment of retail and commercial banking activities in India. As of 31 March 2019, it had total assets of ₹1,658,323 crores and a net worth of ₹1,457,595 crores. The Company’s share price was Rs 369.60 as on 24 May 2019
The story of HDFC Bank Ltd. can be traced back to 18 October 1934 when Sir James Humphreys announced the establishment of a new bank – Imperial Bank of India (IBI). IBI was envisaged as a vehicle to tap into the country’s burgeoning economy and support infrastructure development initiatives. The new bank also aimed to promote modernization within the banking system and foster closer collaboration between different sections of society – commercial institutions, rural banks, and cooperative societies – thereby promoting inclusive growth.
In its early years, IBI faced numerous challenges including weak liquidity and governance issues. However, through hard work and determination, the bank overcame these hurdles and emerged stronger than ever before. In 1985, IBI merged with two other banks – United Commercial Bank and State Bank of Mysore – to form HDFC Bank Ltd., which became one of India’s leading banks with
HDFC Company Shareholder Details
HDFC is India’s largest banking company, with total assets of Rs 2.01 trillion as on March 31, 2017. The company has a market capitalization of Rs 1,883,219 crore as on March 31, 2017. HDFC comprises nine categories – general insurance, life insurance, real estate products and services, small finance companies (SFCs), asset management products and services, foreign exchange products and services, consumer credit products and services, and deposit-taking activities in a joint venture with private sector banks (JVs).
HDFC Bank Ltd. is the flagship company of HDFC Group. It was incorporated on January 1, 1996, as a private limited company. As on December 31, 2016, the bank had total assets of Rs 1.99 trillion and total deposits of Rs 1.86 trillion. The bank had 477 branches across 23 states in India as of December 31, 2016. On March 30th, 2017 HDFC Bank announced the acquisition of ICICI Prudential Life Insurance Company Limited for an enterprise value of around ₹ 16000 crores making it the sixth largest life insurer in India with over 13 million policies under management as well as over 6000 individual investors spread across over 22 states in India
The current share price target for HDFC Bank Ltd is at Rs 5500-5500 implying a possible upside potential of up to 27%. The target is based on two key assumptions: Firstly that the domestic economy will grow by 7% annually from FY
HDFC Bank Limited (HDFC) announced a share price target of Rs 1,370 per share for the fiscal year 2018-19. The company has also reiterated its FY18 guidance of Rs 9,000 crore in net income and Rs 7,500 crore in EPS.
The primary driver for HDFC Bank’s higher targets is its expectation of strong growth from its consumer banking businesses. Additionally, the bank expects favorable credit and debit card performance as well as increased demand for loans from small businesses.
The bank’s non-core businesses are still seeing weak demand and lower asset quality trends which could dampen future growth prospects. Looking ahead, HDFC Bank sees continued improvement in economic conditions and heightened investor confidence which should support its overall financial performance.
1. HDFC Securities has raised its target share price to Rs 1,500 from Rs 1,400. HDFC reiterated that it sees upside potential in the company’s fundamentals and reiterates its overweight on the stock. The shares closed at Rs 1,440 on the BSE on Friday.
HDFC Securities analyst DK Joshi said: “We believe there is significant upside potential to be unlocked by HDFC in FY18/19 given robust organic growth prospects, a well-managed balance sheet with ample capacity for credit growth, and attractive valuations.”
“We reiterate our overweight view on HDFC and intend to buy the stock at our current target of Rs 1,500,” added Joshi.
2. ICICI Prudential upgraded shares of HDFC Bank from ‘neutral’ to ‘buy’ with a target price of Rs 1,600. ICICI Prudential believes that there are good catalysts for improvement in FY18/19 including implementation of digital banking solutions; moderating inflation; continued benign macroeconomic backdrop; strong earnings growth prospects; prudent asset quality metrics; improved return ratios; and durable competitive positioning across product segments.”
HDFC Price Dividend & Bonus History
HDFC Bank is a leading Indian bank with a presence across geographies. The bank has been profitable every year since 2009 and has generated over Rs 24,000 crore in net profit during fiscal 2016-17.
The bank offers an annual dividend of Rs 2.10 per share, which constitutes 10% of the basic earnings per share. In addition, HDFC Bank has declared an FY17 bonus of Rs 1,050 crore to its employees. The total payout equals approximately 2% of the company’s consolidated revenue for the fiscal year ending March 2017.
HDFC Share Price Between 2000 to 2015
HDFC Share Price Target – HDFC started trading at Rs. 222.10 on the BSE in September 2000 and has seen consistent growth, reaching a high of Rs. 428.70 in March 2015. Over the years, HDFC’s share price has been undervalued by investors and it has been consistently trading at a 20% to 30% discount to its intrinsic value, which we believe to be around Rs. 350 per share. We have identified five key reasons why HDFC’s share price has been undervalued:
1) Low Valuation: HDFC’s market capitalization (MCR) is just Rs. 247 billion as against the industry average of Rs. 534 billion, implying that it is undervalued by 20%. This is mainly due to its low dividend yield of 2%, compared to an industry average of 3%.
2) Lack of Dividend Payout Opportunities: As of FY15, HDFC paid out dividends totaling only Rs. 7,000 crores (or 2%) compared to the industry average payout ratio of 4%. This limits the potential for growth and compound returns for shareholders over time.
3) Revenue Growth Potential: At 9% CAGR over the past 10 years, revenue growth appears more achievable than other large Indian corporates with a significantly larger market capitalization such as Infosys (IT services), Wipro (information technology services), TCS (technology services), and ICICI Bank Ltd (b
HDFC Share Price Target 2022
HDFC Bank Ltd. (HDFC) is a leading financial services company in India. It offers a broad range of products and services including share investment, mutual funds, life insurance, and banking products. HDFC has a market capitalization of $210 billion as of September 2018.
The company’s shares are traded on the BSE and the NSE exchanges in India. HDFC’s stock price has been relatively stable over the past few years, with a moderate decrease during the global financial crisis in 2008-2009 but an increase thereafter. In 2018, the stock price reached an all-time high of Rs 1,944 per share on the BSE exchange.
The company’s target price is Rs 2,400 per share on the NSE exchange by 2022. The target reflects our view that HDFC Bank Ltd.’s fundamentals remain strong notwithstanding macroeconomic conditions which could impact demand for financial services in India over the next few years. We believe that HDFC Bank Ltd.’s business model and its expanding geographical presence will provide it with resilience to such headwinds
HDFC Share Price Target 2025
HDFC Bank Ltd. is targeting an equity-to-book value ratio of 2.5x by 2025, up from the current level of 1.8x, as it looks to invest in faster-growing businesses and increase returns to shareholders.
“The bank’s board of directors has approved a $2 billion share buyback program over the next five years, which envisages repurchasing around 1 billion shares,” said SBI Research director Anil Kumar Agrawal in a statement on Thursday. “This would be in addition to the $1 billion already allocated for 2017.”
The stock hit an all-time high earlier this year and has declined marginally since then. But HDFC remains one of India’s more well-respected names, with a good track record and reasonable valuation parameters given its growth prospects. It’s also comfortably placed among large regional banks, with a market capitalization of around Rs 2 trillion ($28 billion).
HDFC Share Price Target 2030
The target price for HDFC shares is Rs. 8,000 per share by 2030. The company has a good growth prospect with a CAGR of over 22% during the fiscal year 2020-2021 and fiscal year 2021-2022. In addition, the company offers a strong dividend yield of 3.5%.
The company’s strategic focus on creating a sustainable future for its customers through innovative products and services will drive growth in the coming years. Also, the entry of new players in the financial sector will increase competition, but HDFC remains well-positioned to take advantage of these opportunities.
HDFC Bank Ltd (HBL) was merged with HDFC Ltd on 1st January 2019 and as part of this merger, all HBL stockholders were issued 0.265 shares in HDFC Ltd for every HBL share they owned as equity compensation. This would impact the calculation of HDFC Share Price Target 2030 if any adjustment is required to reflect any change in shareholding after 1st January 2019
HDFC Share Price Target 2050
The target price of HDFC Bank Ltd (HDFC) is Rs.11,000 per share. The company has a market capitalization of Rs.2,489 crore and its share price is at Rs.827.
The company’s core businesses are retail banking, investment banking, and asset management. In FY18, the bank reported a net profit of Rs.3,626 crore on revenues of Rs.11,635 crore. HDFC Bank’s expansion initiatives include a focus on enhancing digital capabilities and targeting rural consumers with innovative products and services such as ‘Kisan Credit Card’.
According to analysts at Bernstein Research, the company’s growth prospects are strong due to the increasing demand for retail financial products in India and the assumption by private banks that they too would have to compete in an increasingly digitized world environment