HDFC Bank Ltd.
) touched a new 52-week high of $47.49 during its trading session
on Jun 3. The new 52-week high improved from the last one of $47.31
reached on May 22.
HDFC Bank closed the session on Jun 3 at $47.19, reflecting a solid
year-to-date return of 20.6%. The trading volume for the session
was 1.2 million shares. Earnings estimate revisions for fiscal 2015
and 2016, along with an expected earnings growth rate of 30.0% for
the next five years indicate further upward potential for HDFC
Share price of HDFC Bank has risen by 15.8% since the release of
fiscal fourth-quarter 2014 (ended Mar 31, 2014) results on Apr 22.
The bank reported 23.1% year-over-year increase in the net profit
driven by boost in net interest income and fee revenues.
HDFC Bank's net revenues grew by 14.0% due to a 15.3% increase in
net interest income and 11% hike in non-interest revenues. The
top-line growth was partially offset by a 1.2% increase in
Total deposits increased 24.0% year over year while advances rose
26.4%. Asset quality improved as provisions and contingencies
declined 4.8% year over year. Gross nonperforming assets remained
unchanged at 1.0% of gross advances.
Enhanced asset quality as well as the company's focus on expanding
its branch network to drive higher deposits and loans has made us
optimistic about HDFC Banks' performance in the coming quarters.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for HDFC Bank
has inched up by 1.3% to $2.30 per American Depository Receipt
(ADR) for fiscal 2015 and by 2.8% for fiscal 2016. These consensus
estimates reflect a year-over-year growth of 32.2% for fiscal 2015
and 27.0% for fiscal 2016.
HDFC Bank presently has a market capitalization of $226.4 million
and carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the
Australia & New Zealand Banking Group Limited
Banco Bradesco S.A.
BBVA Banco Franc
). All these companies sport a Zacks Rank #1 (Strong Buy).
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