Business · Companies · 1 hr ago
Brokerages favor ICICI Bank after strong results, expect HDFC recovery
Brokerages remained positive on ICICI Bank and HDFC Bank after the lenders reported results for the quarter ending in September.
ICICI Bank’s earnings were stronger than expected, and analysts said its asset quality remained resilient.
HDFC Bank reported modest profit growth and pressure on margins, leading to a more cautious assessment.
Analysts still saw room for improvement at HDFC Bank, citing its valuation, expected earnings recovery and possible improvements in execution amid leadership changes.
Both bank shares fell on Monday, as the Nifty and Bank Nifty also declined.
Analysts’ target prices imply potential gains of 24% to 48% for ICICI Bank and 17% to 78% for HDFC Bank, according to Bloomberg data.
The outlook now depends on how the banks perform in the coming quarters, particularly whether HDFC Bank can deliver the expected recovery.
Brokerages remained positive on ICICI Bank and HDFC Bank after their September quarter earnings, but their assessments differed.
Analysts favored ICICI Bank after stronger-than-expected earnings and resilient asset quality.
Their outlook for HDFC Bank was more measured after modest profit growth and pressure on margins.
Brokerages cited attractive valuations, prospects for an earnings recovery and expected improved execution amid leadership changes at HDFC Bank.
Both stocks closed lower on Monday.
- Who
- Brokerages and analysts assessed ICICI Bank and HDFC Bank.
- What
- Brokerages favored ICICI Bank after strong earnings and maintained a positive outlook on HDFC Bank, while taking a more measured view of it.
- When
- After the September quarter earnings; both stocks closed lower on Monday.
- Where
- Indian markets.
- Why
- Analysts cited ICICI Bank’s stronger-than-expected earnings and resilient asset quality. For HDFC Bank, they pointed to attractive valuations, prospects of an earnings recovery and expected improved execution.
This story does not have two clearly opposing sides.
Brokerages assessed ICICI Bank and HDFC Bank, favoring ICICI Bank and taking a more measured view of HDFC Bank.
ICICI Bank and HDFC Bank shares closed lower.
- ICICI Bank closing price
- Rs 1382, down 1.1%
- HDFC Bank closing price
- 712, down 2.3%
- Nifty
- Fell 1.11%
- Bank Nifty
- Slipped 0.6%
- ICICI Bank target-price upside
- 24-48%
- HDFC Bank target-price upside
- 17-78%