Mutual funds continued to display confidence in HDFC Bank, acquiring an additional ₹8,400 crore worth of shares in February, according to data from ACE Equities. This follows a purchase of ₹13,500 crore worth of shares in January. The combined value of these share purchases over the past two months totals ₹21,900 crore.
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This surge in February resulted in a total of 6.01 crore shares bought in February, adding to the 8.83 crore shares purchased in January.
Shareholding details
As of February 2024, mutual funds collectively held approximately 142.27 crore shares of HDFC Bank, marking an increase from 136.26 crore shares in January.
However, the value of these shares experienced a slight decrease from ₹2.15 lakh crore to ₹2.02 lakh crore during this period, according to ACE Equities data.
Fund activity
Of the 40 mutual funds invested in HDFC Bank, 34 opted to increase their holdings in February, while five chose to dilute part of their stakes.
Notably, Quant Mutual Fund completely exited its position by selling around 1.95 lakh shares.
Top buyers
Leading the buyers in February, ICICI Prudential Mutual Fund made the highest purchase of ₹2,983 crore, followed by Nippon India and HDFC Mutual Fund with purchases of ₹1,043 crore and ₹917 crore, respectively.
Detailed breakdown
| Mutual Fund | Purchase amount |
|---|---|
| ICICI Prudential Mutual Fund | ₹2,983 crore |
| Nippon India | ₹1,043 crore |
| HDFC Mutual Fund | ₹917 crore |
Largest stakeholders
Despite recent stock price volatility driven by disappointing earnings in January, SBI Mutual Fund remains the largest stakeholder in HDFC Bank, holding shares worth ₹51,248 crore as of February 2024.
HDFC Mutual Fund and ICICI Prudential Mutual Fund occupy the second and third positions with holdings valued at ₹23,630 crore and ₹22,128 crore, respectively.
Other significant players include UTI Mutual Fund, Nippon India Mutual Fund, Kotak Mahindra Mutual Fund, and Mirae Asset Mutual Fund.
Stock price and analyst ratings
HDFC Bank shares have recently seen a downturn in price, attributed to disappointing earnings in January.
Concerns regarding underperformance in net interest margins (NIM), sluggish deposit growth, and slower-than-expected retail growth affected investor sentiment following the bank's Q3 results.
Despite this, several brokerages have raised their target prices for HDFC Bank, citing optimism about its long-term prospects.
Analysts at Citi issued a 'buy' rating with a target of ₹2,050 per share.
Meanwhile, Morgan Stanley labelled HDFC as 'overweight' with a target price of ₹2,110 per share.
(Edited by : Amrita)
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