HDFC Bank gained around 2 percent intraday on Monday after the bank reported healthy financials.
The private sector lender reported profit growth of 20.1 percent for quarter ended December 2017, with slight increase in asset quality and strong loan growth.
Profit for the quarter stood at Rs 4,642.60 crore, up from Rs 3,865.33 crore in year-ago. The growth was driven by net interest income, other income and operating profit.
Net interest income during the quarter increased 24.1 percent to Rs 10,314.3 crore compared to Rs 8,309.09 crore in corresponding period, with strong loan growth of 27.5 percent.
"Net interest income was driven by average asset growth of 16.6 percent and a core net interest margin for the quarter of 4.3 percent," the bank said in its filing.
Brokerage: CLSA | Rating: Buy | Target: Rs 2,340
The brokerage expects 20% CAGR in earnings over FY17-20. Q3 PAT was In-line; encouraged to see 32% yoy growth in operating profit. CASA growth slowed albeit on a high base. Further, a planned capital raise will aid scope for network expansion.
Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 2,676
Macquarie said that the firm is a strong compounding story with no asset quality issues. It has raised earnings estimates by 2-4% for Fy18-20.
Brokerage: Nomura | Rating: Buy | Target: Unchanged at Rs 2,350
Nomura expects the firm to delivery best in class PPOP growth over FY17-20. Current valuations of 18x fy20 EPS are not demanding.
Brokerage: Morgan Stanley | Target: Overweight | Target: Rs 2,500
The firm believes that the bank’s results show strong revenue/PPoP growth. Meanwhile, asset quality trends were steady, while CASA deposits grew given higher base following spurt in deposits post demonetisation.
At 12:44 hrs HDFC Bank was quoting at Rs 1,975.35, up Rs 24.15, or 1.24 percent, on the BSE. It has touched a 52-week high of Rs 1,986.00.
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