HDFC Bank Share Price Target 2022 | Bank Stock to Buy
HDFC bank, Consistent Compounder. Today We are going to analyze the HDFC bank share. This is the right time for Bank Stock to Buy for the long term or what is the HDFC Bank Share Price Target 2022 in the end.
If you are thinking to invest in the HDFC bank share for 2022. So, this article is made for you and here we have analyzed the Fundamental Analysis OF HDFC Bank Share. HDFC Bank is the largest bank in India.
HDFC Bank Share has Given more than 140% return in the last 5 years to the investors. If You See the Market Capitalization of HDFC Bank Share, It Almost near to 8 Lakh Crore. Now the Question is HDFC Bank share has given multi-bagger returns, so now it has some strength to give returns in the future? Therefore, before investing in any stock, always do a study on Companies’ business model, technical analysis, or do fundamentals analysis. Let’s See the fundamentals analysis of HDFC bank share and what is the HDFC Bank Share Price Target 2022 in the end.
HDFC Bank Share Fundamental Analysis
Business Model of HDFC Bank Share
Before investing in any bank let’s understand how banks earn money.
In Short, People open accounts in a bank and store their money in the bank for safety reasons and for getting some interest on their money. The interest rate for saving and current account are In X Percent. banks use People’s money and lend it to others. The difference between interest rates their banks earn a profit.
The revenue stream of HDFC Bank Share
HDFC bank revenue mainly comes from 03 categories
1- Retail banking
2- Wholesale banking
3- Treasury Business
1- Retail banking
It means banks do business with normal people like us. It consists of
1-Auto Loan
2-Home Loan
3-Personal Loan
4-CASA
5-Fixed Deposits.
2-Wholesale Banking
banks Deals with Big companies. It takes deposits from big companies in big amounts and gives also in big amounts.
NPA of HDFC Bank
NPA plays the most vital role in the selection of any bank share. NPA meaning is Non-Performing Assets. The loans which are given by the bank and not getting back from peoples is considered in NPA. Currently, HDFC Bank NPA is almost
Gross NPA – 1.32%
Net NPA – 0.40%
If NPA % is less than 1 then it is considered as good for investment purposes.
CASA ratio of HDFC Bank
CASA means Current account Saving account. If banks have more savings and current accounts then it is good for banks because banks pay less interest on saving and current accounts as compared to Fixed deposits. The more Percent of CASA ratio is good for investment purposes for the investor.
HDFC Bank maintains a good CASA ratio. It is almost 46.1%.
Now HDFC Bank’s share price is trading at 1386 RS.
HDFC Bank has been maintaining a good ROA (Return on Asset) of 1.87% for the last 3 years.
HDFC Bank has been consistently maintaining a Net Interest Margin (NIM) of 3.89% for the last 3 years. It also maintains a good CAR of 18.78%.
HDFC Bank has the top market capitalization value, though that HDFC has delivered good Profit growth of 21 percent from past 3 years the past three years.
let’s see some Negative points related to the HDFC Bank share.
HDFC Bank’s share has a low-interest coverage ratio.
HDFC Bank’s shares have Contingent liabilities of Rs.1020028.80 Cr.
These are some negative points of the company.
