Updated Jun 22, 2024 | 03:31 PM IST
Nikunj Dalmia on HDFC Bank stock: Heavyweight HDFC Bank shares have climbed nearly 15 per cent in the last one year, this taking the Nifty Bank index to new highs.
Nikunj Dalmia’s stock analysis on HDFC Bank. (Pic: ET NOW)
Nikunj Dalmia On HDFC Bank Stock: the largest private lender in the country, has been gaining traction on the Street post Lok Sabha election result. The index heavyweight has climbed 6 per cent in the last two week. It has moved northward by nearly 15 per cent in the last one month, thus powering the Nifty Bank index to zoom as much as 8 per cent during the period. On Friday, HDFC Bank shares closed in the red at Rs 1665.40, thus halting their 7-day winning streak.
ET NOW Editor-in-chief Nikunj Dalmia has said that the bank is unlikely to see a strong profit growth in FY2025. The bank has said that it will focus on the cost-to-income ratio for the next two to three quarters.
“FY2026 will be a better year for HDFC Bank in terms of growth. If you are assuming that HDFC Bank stock will suddenly move towards Rs 2000… the stock will see a sharp rally after election result and before the budget… it is not like that,” he said.
On HDFC Bank vs SBI, Dalmia said that the gap of outperformance is now visible between the two banks and this will expand going forward.
As per BSE analytics, HDFC Bank shares in the last one month has climbed nearly 15 per cent while the SBI has remained flat during the same period.
The Editor-in-chief said: “You will see outperformance in private banks and I think the gap between HDFC Bank and SBI will keep increasing every quarter by 2.5 to 3 per cent. I want to highlight here that the market cap of private banks are huge and they are benchmark stocks. When you compare the outperformance in benchmark stocks.. then you compare them with Nifty and benchmark sector. So the two-three banks that were underperforming Nifty, will now outperform.”
“PSU banks were doing much better but now you will get to see a compression between PSU and private banks,” the market guru added.
