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Shares of HDFC Bank and ICICI Bank soared to record highs on Thursday, driven by investor optimism ahead of their Q4 FY25 results, set to be announced on April 19. The rally in these banking giants propelled the Nifty Bank index to outperform the benchmark Nifty 50, with both stocks emerging as top gainers.
Market Performance
HDFC Bank’s share price climbed 1.07% to a lifetime high of ₹1,898.00 per share on the BSE, while ICICI Bank surged 2.01% to hit ₹1,384.05 per share. By 11:00 AM, HDFC Bank shares were trading 0.45% higher at ₹1,886.30, and ICICI Bank shares were up 1.25% at ₹1,373.70 on the BSE.
Note: The lifetime high prices reflect adjustments for stock splits, mergers, and bonus issues.
With the stock market closed on Friday, April 18, for a holiday, investors have only today to adjust positions in HDFC Bank and ICICI Bank shares before the Q4 results.
Q4 Results Preview
HDFC Bank
HDFC Bank, India’s largest private sector lender, is expected to report modest growth for Q4 FY25. According to Motilal Oswal Financial Services (MOFSL):
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Net Profit: +3.2% YoY
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Net Interest Income (NII): +5.5% YoY
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Deposit Growth: 14.6%
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Loan Growth: 3.8%
Margins may face slight pressure, but stable cost ratios and improved asset quality are anticipated. MOFSL highlights HDFC Bank’s focus on operational efficiency, projecting a cost-to-income ratio of ~40% and cost-to-asset ratio of 1.7% by FY27. The brokerage forecasts a Return on Assets (RoA) of 1.8% and Return on Equity (RoE) of 14.1% by FY27, with the stock trading at 2.2x FY26E Adjusted Book Value (ABV).
MOFSL Rating: Buy, with a target price of ₹2,100.
ICICI Bank
ICICI Bank is poised for a robust Q4 FY25, driven by strong loan growth and enhanced asset quality. MOFSL estimates:
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Net Profit: +12.3% YoY
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NII: +9.2% YoY
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Margins: Expansion expected
The bank is targeting an RoA of 2.2% and RoE of 17% by FY27. Trading at 2.2x FY26E ABV (adjusted for subsidiaries), ICICI Bank is positioned for top-tier performance.
MOFSL Rating: Buy, with a target price of ₹1,600.
Technical Analysis
Anshul Jain, Head of Research at Lakshmishree Investment, favors ICICI Bank for its near-term potential:
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ICICI Bank: The stock broke out of a 140-day Volatility Contraction Pattern (VCP) at ₹1,362, signaling further upside toward ₹1,500. Despite moderate volumes, the price action remains strong.
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HDFC Bank: Trading near its all-time high of ₹1,880, the stock may face profit booking.
Jain suggests ICICI Bank offers a better risk-reward profile heading into the Q4 results.
Which Stock to Buy?
Both HDFC Bank and ICICI Bank are top picks in the banking sector, with MOFSL maintaining a ‘Buy’ rating for both. However, ICICI Bank’s stronger projected growth, favorable technical setup, and higher RoE make it a more attractive choice for near-term outperformance.
Source
This article is based on data and insights from Motilal Oswal Financial Services (MOFSL) and Lakshmishree Investment, as reported on April 16, 2025.
Disclaimer
The views and recommendations expressed in this article are those of individual analysts and brokerage firms, not Jobaaj News. Investing in stocks carries inherent risks, and past performance is not indicative of future results. We strongly advise investors to consult certified financial experts before making any investment decisions. Jobaaj News is not responsible for any financial losses incurred from acting on the information provided.
