HDFC Bank vs ICICI Bank Share: After the June quarter results, know which stock of HDFC and ICICI Bank will make money? Know the latest report and new target price of the leading brokerage house.
Best Banking Stocks: As soon as the June quarter results (Q1FY27) came out, the country’s two largest private banks HDFC Bank and ICICI Bank have once again come into the limelight. On July 18, both these giants announced their quarterly results and today on July 20, there was a big movement in both the stocks. In such a situation, the question in the minds of investors is that now by betting in which stock will they get the biggest profit? Expressing confidence on both these banking stocks, leading brokerage house Nuvama has maintained the ‘BUY’ rating. However, in terms of earnings (Upside Potential) from the current market price, one bank seems to have a slight edge over the other. Let us know the target prices of both the banking stocks…
HDFC vs ICICI Bank Share Price Target: Which of the two has the opportunity for more profits?
Brokerage house Nuvama has issued new target prices for both the big banks after the results, which are indicating bumper returns from the current prices. The target price of HDFC Bank (HDFC Bank Share Price Target) has been fixed at ₹ 1,025, which is about 25% more than the current price of ₹ 780. At the same time, the target price of ICICI Bank Share (ICICI Bank Share Target Price) is said to be ₹ 1,850, the potential return of which is around 28%. Currently the share is trading at around ₹ 1,461. That is, if seen from the current level, ICICI Bank is showing slightly more upside than HDFC Bank.
HDFC Bank Share: Long race horse despite sluggish quarter
HDFC Bank’s performance in the June quarter has been slightly slow or moderate compared to market expectations. There has been some pressure on the company’s margins and profits. Despite this, Nuwama believes that there has been no decline in the bank’s long-term growth story. The bank’s loan business continues to see strong growth, led primarily by the corporate and small-medium enterprises (SME) segments. Retail loans like car loans, personal loans and gold loans are also showing good recovery. Even though the Net Interest Margin (NIM) has declined slightly in this quarter, the increase in foreign currency deposits (FCNR-B) will provide good support to both margin and credit growth in the coming times.
What is the brokerage’s opinion?
Nuvama believes that HDFC Bank has strong capital and provision buffers. However, a big rise in this stock will also depend on when there is complete clarity regarding the extension of the tenure of the bank’s Managing Director (MD).
ICICI Bank Share: Nuwama’s ‘favourite’ made with explosive performance
ICICI Bank has continued its excellent performance in this quarter also. It has impressed the market on the back of strong loan growth, better margins and stable asset quality. According to Nuvama, ICICI Bank has recorded a strong credit growth of 20% year-on-year, which is one of the best in the industry. Corporate, rural and business banking had a major contribution in this. While margins of most banks are falling, ICICI Bank has shown marginal improvement in its Net Interest Margin (NIM), which reflects its excellent fund management capabilities. The gross NPA of the bank has further reduced, due to which its asset quality has further strengthened.
What does the brokerage firm say?
Nuvama says that ‘ICICI Bank is our top pick (most preferred share) in the banking sector. This is because of its excellent credit growth, excellent return ratio (RoA/RoE), strong management and strong provision buffer.
Disclaimer: The share price targets and views of brokerage firms given in this article are based only on their personal research. This is not investment advice in any way. Investing in the stock market is subject to risks. Before making any investment, definitely consult your financial advisor.