InvestorQ : HDFC Bank is announcing its quarterly results for the fourth quarter on 20th April. What can we expect from the results in this quarter and should I buy after results?
Rutuja Nigam made post

HDFC Bank is announcing its quarterly results for the fourth quarter on 20th April. What can we expect from the results in this quarter and should I buy after results?

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Arti Chavan answered.
2 years ago
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You must remember that HDFC Bank has shown consistent growth in the last many years; quarter after quarter, which is one of the reasons it commands strong valuations in the market. While it is hard to predict the results, here is what the street consensus estimates looks like.

What the street is expecting on HDFC bank results?

The loan book is expected to grow at over 22% and the gross NPAs are likely to be around 1.4%. Net NPAs are likely to be well below the 1% mark due to aggressive provisioning. The recent NBFC crisis has benefited the bank due to the lower risk quotient in these large banks. The only risk is that there could be some risk of slippages in the SME lending book where pressure has been quite acute in the last few months. Also, the agri portfolio of the bank could come under pressure and put strain on the net interest margins (NIMs). The net profit is expected to grow 22% QOQ, which is in line with street expectations.

Can I buy HDFC Bank after results?

You have the time to look at the results and then take a call. However, the stock is quoting close to its peaks and is trading at nearly 33 times historical earnings. That does not leave too much room for upsides unless there is some positive surprises in the results. That looks difficult in a tough quarter. The bank has typically traded in a range of Rs.300-400 and it is always a good idea to buy at the lower end of that range. That may be a better strategy for you.

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