HDFC Bank Share: The price of HDFC Bank shares has been consistently falling for the past two months. A stock that was priced at ₹1681 in January dropped to ₹1446 on February 3, 2024. Looking at the previous month, BankNifty fell from 48,178 points to 45,974, with HDFC Bank having the most significant impact, contributing approximately 32.8% to BankNifty. So, the question arises: why is HDFC Bank’s share price falling? To understand this, let’s first examine the bank’s financials.
HDFC Bank’s Last 5 Years Revenue
Over the past five years, HDFC Bank has shown consistent revenue growth annually, indicating that the bank’s financials are sound.
| Year | Revenue (in Cr.) |
|---|---|
| 2023 | ₹204666 |
| 2022 | ₹167695 |
| 2021 | ₹155885 |
| 2020 | ₹147068 |
| 2019 | ₹124108 |
Also read: NCL Research and Financial Services Share Price Target 2024, 2025, 2026, 2030
HDFC Bank’s Last 5 Years Profit
Reviewing HDFC Bank’s record over the past five years reveals that the company has generated good profits. Year-on-year, the bank’s profits also seem satisfactory. So, where is the shortfall? To find out, let’s take a look at the bank’s quarterly profits.
| Year | Yearly Profit (in Cr.) |
|---|---|
| 2023 | ₹46,149 |
| 2022 | ₹38,151 |
| 2021 | ₹31,857 |
| 2020 | ₹27,296 |
| 2019 | ₹22,446 |
Also read: IRFC Share Price Falls More Than 13.50% This Month
HDFC Bank’s Last 5 Quarters Profit
| Quarters (2022-23) | Quarterly Profit (in Cr.) |
|---|---|
| December 2023 | ₹17,718 |
| September 2023 | ₹17,312 |
| June 2023 | ₹12,403 |
| March 2023 | ₹12,634 |
| December 2022 | ₹12,735 |
Reason for the Decline of HDFC Bank’s Share Price
If we examine the figures before September 2023, we can see a decline in profits quarter over quarter. However, analysts had anticipated significant growth following the merger between HDFC Bank and HDFC Ltd. However, this did not materialize as expected. While there was an increase in profits after the merger, it was not as substantial as what analysts and the market had anticipated. Consequently, this news spread in the market like wildfire, leading those who had shares of HDFC Bank to start selling off their holdings, resulting in fluctuations in the share price.
There seems to be no flaw in the bank’s financials; this negative sentiment in the market is a result of pessimistic speculation surrounding the bank.
Should You Buy HDFC Bank Shares or Not?
In our opinion, this is a good investment opportunity for every investor and trader. From one perspective, due to the negative sentiment prevailing in the market and the various conflicting statements in the media, HDFC Bank shares are currently available at a discounted price.
Some brokerage and research firms have forecasted that HDFC Bank’s share price could reach ₹1600 in the short term and up to ₹2410 by 2025 (long term). Therefore, if you are not trading for the short term, it is advisable to hold onto your shares instead of selling them, allowing you to earn significant profits in the long run.
