The share price of HDFC Bank gained over 1 percent to hit a fresh 52-week high of Rs 1,423.35 apiece in the early trade on Tuesday after the global brokerage CLSA maintained its positive view on the stock and raised the target price.
CLSA maintained a 'Buy' call on the stock and raised the target price to Rs 1,700 per share from Rs 1,525 earlier. HDFC Bank remains one of CLSA’s top picks.
The brokerage is of the view that the macro environment has improved materially after lockdown, and that coupled with better use of data, analytics and bureau to underwrite is leading to lower retail stress versus past cycles.
“The bank’s CEO transition has been smooth and the bank continues to work on its five-pillar strategy to drive growth targeting newer geographies/ecosystems and the bank is redefining systems/processes, and hence in the medium term Opex efficiency still has room to improve,” CLSA said in a note.
The stock price of HDFC Bank has rallied 92 percent since its 52-week low of Rs 738.90 apiece hit on March 24, 2020. At 9:55 am, the shares of HDFC Bank were trading 1.76 percent higher at Rs 1,419.40 apiece on the BSE as against a 0.70 percent gain in the benchmark Sensex.