Brokerages back ICICI Bank on strong Q2 earnings, see HDFC Bank recovery ahead
Brokerages remain optimistic about ICICI Bank's strong earnings and asset quality after the recent quarter. However, HDFC Bank's profit growth was modest, and margins are under pressure, leading to a more cautious outlook. Despite this, both banks have attractive valuations and positive earnings recovery prospects. On Monday, both stocks experienced declines, along with broader market indices.…
Brokerages remain optimistic about ICICI Bank and HDFC Bank following their September quarter earnings, although their outlooks for the two lenders differ significantly. Analysts expressed confidence in ICICI Bank's earnings, which exceeded expectations, and praised its robust asset quality, solidifying its standing among top private sector banks. Conversely, their view on HDFC Bank was more cautious, as the bank posted slower profit growth and margin pressure.
Despite these mixed assessments, both stocks experienced a dip on Monday. ICICI Bank dropped 1.1% to Rs 1382, while HDFC Bank fell 2.3% to Rs 712. The Nifty index declined 1.11%, and the Bank Nifty slipped 0.6%. According to Bloomberg data, ICICI Bank's target prices suggest a potential upside of 24-48%. For HDFC Bank, the outlook indicates possible gains of 17-78%.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
