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HDFC Bank shares rise 0.85%, nearing its all-time high. Strong financials, consistent growth, and a strategic focus on retail deposits make it a great pick for institutional investors. Analysts expect further upside potential.
HDFC is the largest private sector bank in India. The Bank shares began the day at ₹1,913.00 on May 1, 2025. The price rose to ₹1,925 by 12 PM. It then hit an intraday high of ₹1,936.90, while the low for the day was ₹1,910.30. The stock is trading close to the 52-week peak of ₹1,978.90. This shows good recovery and growth potential.
HDFC Bank's market capitalization is ₹14.74 lakh crore, ranking among the biggest Indian companies. 16 million shares are being traded, up from an average of over 17 million in the last 20 days.
The HDFC Bank share price chart showed gains of 0.85% as of 12.04 PM on May 1, 2025:
The trailing twelve-month (TTM) price-to-earnings (PE) ratio of 20.82 is modestly above the sector average PE of 19.53. It means investors are prepared to pay a premium for the HDFC Bank shares. Its price-to-book (P/B) ratio stands at 3.08 and book value per share at ₹625.11.
The dividend yield is 1.01%, providing a balance between growth and returns to shareholders. The TTM EPS of the bank is ₹92.47, showing a year-over-year growth of 9.82%.
HDFC Bank profits have risen at a compound annual growth rate (CAGR) of 21% over the last five years. Median sales growth has been 16.4% over the last decade, making its growth story stronger. Return on equity (ROE) is 14.5%, and return on capital employed (ROCE) is 7.51%, both reflecting the efficient utilization of capital.
In Q4 FY25, the bank posted a net interest margin (NIM) of 3.65%. Its net non-performing assets (NPAs) are low at just 0.43%. Thus, reflecting strong asset quality and effective risk management.
Many factors have driven the rise in HDFC shares today:
Financial Performance: Deposits increased 14.1% year on year to ₹27.15 lakh crore, and gross advances by 5.4% to ₹26.44 lakh crore. Net profit and net interest income also posted good growth during Q2 FY25.
MSCI Index Inclusion: The increased weight of the bank in the MSCI Emerging Markets Index has seen substantial passive fund inflows estimated at between $1.9 billion and $4 billion. This followed when foreign holding declined below 55%, which added foreign portfolio investment (FPI).
Technical Breakout: The stock recently broke out of a bullish pattern, signaling additional growth potential and pulling in both short-term traders and long-term investors.
Operational Strategy: An emphasis on retail deposits, electronic banking, and conservative credit risk management continues to boost investor faith.
Index Contribution: HDFC Bank is among the leaders in indices such as Nifty 50 and Nifty Bank, enhancing its presence and attractiveness to investors.
HDFC Bank stock continues to be a stable investment option, supported by good fundamentals, earnings growth, and positive technicals. Analysts recommend a ‘BUY’ rating with indicators of the shares outperforming their previous 52-week high.
The stock is a first choice among long-term investors with a global investor base. However, investors should keep an eye on macroeconomic trends and sector dynamics before making any investment decisions.
