Accumulate HDFC Bank; target of Rs 510: PLilladher

72290 Investors following HDFC Bank. Share this News with them.

0

Like this story, share it with millions of investors on M3

Accumulate HDFC Bank; target of Rs 510: PLilladher

Prabhudas Lilladher is bullish on HDFC Bank and has recommended accumulate rating on the stock with a target of Rs 510 in its January 19, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Accumulate MindTree; target of Rs 500: PINC Research Accumulate MindTree; target of Rs 502: Angel Broking Buy ONGC; target of Rs 285: IIFL ALSO READ See previous views by Prabhudas Lilladher See what other Experts & Brokerages are saying about HDFC Bank See messages about HDFC Bank HDFC Bank BSE | NSE 30/05/12 Are Mutual Funds betting on HDFC Bank?

Prabhudas Lilladher is bullish on HDFC Bank and has recommended accumulate rating on the stock with a target of Rs 510 in its January 19, 2012 research report.

"HDFC Bank (HDFCB) continues to deliver consistent +30% PAT growth, with robust asset quality trend. Strong ROA improvement has aided HDFCB to deliver +30% PAT growth despite ~25% b/s growth over FY10-12. Though growth could remain <22- 23% in FY13, HDFCB could potentially deliver +30% PAT growth with possible margin improvement and credit costs levers. We have increased our earnings by 2- 3% and PT to Rs510/share and maintain our 'Accumulate' rating. We prefer HDFCB over Kotak Bank among defensives as we expect relatively better ROA resilience for HDFCB in a normalised credit cost scenario."

"Retail segment aided ~22% YoY growth, with HDFCB paring down growth (2% sequential contraction) in the bulk corporate book due to low spreads. Repricing and high proportion of retail-lending aided yields. With the rate cycle likely to reverse, we expect marginal improvement in margins, though management expects limited margin impact. Slippages have remained stable sequentially and management is not seeing any significant stress points even now. Given low NPA accretion over the last 7-8 qtrs, management expects lower recoveries/write-offs, going forward, which could lead to marginally higher net accretion to NPAs; however they do not see any material negative surprises in the near term. HDFCB added ~Rs0.7bn to their floating provision book (~Rs11bn currently) which will provide a huge cushion when the cycle turns," says Prabhudas Lilladher research report.    

Public holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment