Why is HDFC Bank stock hovering in 1400 to 1480 range for the last 3 months? Will there be a breakthrough in the near future?

HDFC Bank has been a blue-eyed boy(metaphorical) for retail, HNIs, domestic & international institutional investors

The bank through an amazing focus on governance, lending norms, and focus on generating returns to beat market estimates till Covid-19.

In the Covid-19 period the uncertainties are:

• NPA provisioning
• Decrease in appetite for borrowing among retail borrowers
• Increased competition from new digital entrants
• Tighter regulations by the RBI
• Higher cost of borrowing for the bank

Despite a return of ~43% in the past year, the bank will not have a smooth ride going ahead. The past return was based on the pre-covid approach. The post-covid measures will show up in the coming quarters. Subsequent return of Covid-19 with lockdowns can impact returns.

Hope this helps

All the best!

References:

1. https://www.financialexpress.com/industry/banking-finance/q1-performance-hdfc-bank-profit-up-16-1-to-rs-7730-crore/2292550/
2. https://www.indiatvnews.com/business/markets-hdfc-bank-share-dividend-2021-record-date-announcement-share-price-724172
3. https://economictimes.indiatimes.com/markets/expert-view/should-you-buy-the-dip-in-hdfc-bank-shares/articleshow/84580819.cms