HDFC Bank Stock Price Increase by 2% After Strong Q4 Results

HDFC Bank Share Price Surges Following Robust Q4 Performance Following the announcement of strong Q4 results, HDFC Bank's share price experienced a significant rally. At the opening bell on Monday, 21st April 2025, the share price surged over 2% to reach a new all-time high on the BSE, touching ₹ 1,950. However, at noon, the shares were trading 1.06% higher at ₹1,927.20.

Key Highlights of HDFC Bank's Q4 FY25 Results 

HDFC Bank reported a net profit of ₹ 17,616 crore, marking a year-on-year (YoY) growth of 6.7% for the fourth quarter of FY25. The bank's net interest income (NII) also saw a substantial increase of 10.3% YoY, reaching ₹ 32,070 crore. The net interest margin (NIM) stood at 3.54% on total assets and 3.73% based on interest-earning assets. Furthermore, HDFC Bank's asset quality showed sequential improvement, with gross non-performing assets (GNPAs) at 1.33% as of March 31, 2025, down from 1.42% in the December 2024 quarter, although higher than the 1.24% from the previous year. Net NPAs were reported at 0.43% of net advances. The board of HDFC Bank also recommended a dividend of ₹ 22 per share for FY25.

Positive Reactions and Revised Targets from Analysts 

Analysts reacted positively to HDFC Bank's Q4 results, leading to several brokerages increasing their target prices for the stock. Anand Dama from Emkay Global Financial Services noted better credit growth and stable core margins, anticipating HDFC Bank to benefit from easing regulatory stances. Emkay Global retained a ‘Buy’ rating and raised the target price by 5% to ₹ 2,200. Nuvama Institutional Equities also reported strong Q4FY25 earnings, highlighting a beat on core NIM and lower QoQ slippage. They reiterated their ‘Buy’ rating and increased the target price to ₹ 2,195 from ₹ 1,950. 

Technical Outlook Suggests Potential Profit Booking 

Despite the positive momentum, Anshul Jain, Head of Research at Lakshmishree Investment, suggested that the stock now appears overextended and a profit booking move towards the ₹1,850- ₹1,860 zone is highly likely. He noted that HDFC Bank shares are trading well above their key Exponential Moving Averages (EMAs) and advised investors holding momentum longs to consider booking partial profits, suggesting a pullback would offer a better risk-reward for re-entry.

Historical Stock Performance 

HDFC Bank's share price has shown strong performance over various timeframes. It has gained 10% in one month and over 18% in three months. Over the past year, the shares have risen by 27%, and they have delivered a multibagger return of 110% in the last five years. At present, the bank’s share price is trading at ₹1,927.20.

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