HDFC Bank Shares Experience Notable Decline Despite Strong Q3 Profit Growth in 2024

Before Market Opens
23 January, 2024
  • Performance Overview: Despite reporting better-than-expected Q3 profits, HDFC Bank’s shares experienced a sharp decline in early 2024. This drop was surprising given the bank’s strong financial results.
  • Analyst Concerns:
    • Nuvama Institutional Equities: Downgraded HDFC Bank due to concerns over liquidity coverage ratio (LCR), deposit growth, and loan growth, leading to a 5-6% cut in earnings for FY25E-FY26E.
    • Phillip Capital: Highlighted liquidity challenges affecting deposit mobilization and suggested a target price of ₹1,920.
    • Motilal Oswal: Noted that margins remained largely flat, slightly below expectations, with a target price of ₹1,950.
    • Nirmal Bang Institutional Equities: Remained positive on HDFC Bank in the long term, maintaining a buy rating with a target price of ₹1,994.
    • Kotak Institutional Equities: Maintained a ‘buy’ rating but raised concerns about the sustainability of operating profit growth drivers.
  • Provision Impact: A significant contingency provision towards an Alternate Investment Fund (AIF) of ₹1,200 crore impacted the results, despite being 5% higher than the carrying value.
  • Future Outlook: HDFC Bank’s future outlook appears promising with anticipated earnings growth of 17% and revenue growth of 14% per annum over the next five years. The bank is expected to focus on digital transformation, asset quality maintenance, and market expansion.
24 February, 2024

Byju’s, once heralded as a flagship in India’s edtech sector, is grappling with severe financial and operational challenges, marked by a dramatic valuation drop. The company, which sought to stabilize its operations and finances, is now raising funds at a valuation significantly lower than its peak. This development comes amid efforts to address a substantial debt burden, with Byju’s proposing a repayment plan for its $1.2 billion loan. Investor confidence appears shaken, with some stakeholders pushing for drastic changes in leadership to navigate the crisis effectively. The turmoil reflects broader sectoral pressures and raises questions about the sustainability of high-growth trajectories in the edtech industry

10 February, 2024

Australia’s energy market is witnessing significant transitions and investments aimed at bolstering renewable energy infrastructure and securing gas supplies. Key developments include a $179 million investment by the Queensland Government for community battery projects, Santos’ $5.7 billion gas pipeline project following a legal battle win, and a $206 million energy savings package for NSW households. Additionally, the Australian government has secured new gas supply deals to support the east coast market, emphasizing the role of gas in transitioning to a renewable grid.

India 2024
9 February, 2024

The latest opinion polls, including the Mood of the Nation survey by India Today, predict a comfortable victory for Prime Minister Narendra Modi’s BJP and its allies in the National Democratic Alliance (NDA), with a projected win of 335 Lok Sabha seats in the 2024 general elections. This forecast suggests a slight decrease from the 2019 elections but still ensures a majority. The survey, involving interviews with over 149,000 respondents, reflects Modi’s enduring popularity based on his nationalist policies and economic reforms. Other polls echo these findings, although seat projections vary slightly. The opposition INDIA alliance is expected to secure a significant number of seats, yet not enough to challenge the NDA’s majority. These predictions highlight a political landscape that remains largely favorable to Modi and the BJP as the election approaches