HDFC Bank puts up a healthy Q2 show; will the stock regain its footing?
Despite the resilient performance in the pandemic year, the HDFC Bank stock has underperformed the broader benchmark in recent times
October 18, 2021 / 11:11 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
HDFC Bank (CMP Rs 1,685; Mcap: Rs 933,559 crore) has posted a strong performance with net profit rising by 18 per cent year on year (YoY) in the second quarter of FY22 (Q2 FY22).
Profit growth was healthy despite higher operating expenses, stable margins and accelerated provisioning during the quarter. So then, what was the key driver of Q2 earnings? A strong pick-up in business momentum underlined HDFC Bank’s performance in Q2 FY22.
Being impacted by the pandemic in the past...