HDFC Bank share price rallies over 2% to all-time high after strong Q4 results. Should you buy or sell?

HDFC Bank share price gained over 2% on Monday to hit a record high after the private sector lender reported strong Q4 results. HDFC Bank shares rallied as much as 2.27% to an all-time high of ₹1,950 apiece on the BSE.

The largest private sector lender in the country, HDFC Bank reported a net profit of ₹17,616 crore in the fourth quarter of FY25, registering a growth of 6.7% year-on-year (YoY), while its net interest income (NII) increased 10.3% YoY to ₹32,070 crore. The bank’s net interest margin (NIM) stood at 3.54% on total assets and 3.73% based on interest-earning assets.

The bank’s asset quality improved on a sequential basis. The board of HDFC Bank also recommended a dividend of ₹22 per share FY25.

Analysts were impressed by HDFC Bank Q4 results, leading to increase in target prices on the stock by many brokerages.

“After growth calibration for the past one year, and under pressure to bring down LDR and manage PSL/margins, HDFC Bank reported better credit growth in 4Q at 5% YoY and 4% QoQ as well as stable core margins. We believe HDFC Bank would be the key beneficiary of the easing regulatory stance on LDR and liquidity which should reflect in better growth in FY26; this would thereby reduce the bank’s growth gap with peers and thus ease investor concern,” said Anand Dama, Senior Research Analyst at Emkay Global Financial Services.

He also believes that the listing of HDB Financial Services would unlock value, which should be a positive catalyst.

Emkay Global retains a ‘Buy’ rating on HDFC Bank shares and raised the target price by 5% to ₹2,200 apiece.

According to Nuvama Institutional Equities, HDFC Bank reported strong Q4FY25 earnings with a beat on core NIM, up 5 bps QoQ, and lower QoQ slippage. Core PPOP grew 10% YoY and 2% QoQ, while slippages decreased 15% QoQ.

“Management expects to maintain strong deposit growth even amid rate cuts and guides for smaller improvement in LDR versus FY25. We believe with positive outcomes on asset quality, gain in deposit market share, improving LDR and uptick in core NIM, Q4FY25 was strong,” said Nuvama Equities.

The brokerage firm reiterated its ‘Buy’ rating and raised HDFC Bank share price target to ₹2,195, based on 2.8x BV FY26E, from ₹1,950 earlier.

HDFC Bank Shares Technical Outlook

HDFC Bank, after breaching its all-time high post strong Q4 results, is witnessing vertical momentum, according to Anshul Jain, Head of Research at Lakshmishree Investment.

“However, HDFC Bank stock now looks overextended and a profit booking move towards the ₹1,850 – 1,860 zone is highly likely. HDFC Bank shares are trading well above its 10, 20, and 50-day EMAs (Exponential Moving Averages). Investors holding momentum longs are advised to book partial profits at current levels. A healthy pullback would offer better risk-reward for re-entry as the stock cools off from its stretched levels,” Jain said.

HDFC Bank Stock Price History

HDFC Bank share price has gained 10% in one month and more than 18% in three months. Over the past one year, HDFC Bank shares have risen 27%, and have delivered a multibagger return of 110% in the past five years.

At 9:55 AM, HDFC Bank shares were trading 1.22% higher at ₹1,929.80 apiece on the BSE. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.