Global research house CLSA stays bullish on HDFC Group stocks and expect 25-30 percent potential upside going ahead.
It has a buy rating on both HDFC as well as HDFC Bank with a price target at Rs 2,360 and Rs 2,730 apiece.
In the case of Housing Development Finance Corporation (HDFC), CLSA said housing demand is largely stable despite recent events in financial markets and the stock is among its top picks in the financial sector.
It sees scope for healthy growth and market share gains as peers consolidate. Return on equity of HDFC should expand as leverage is optimised, it feels.
In the case of HDFC Bank, the research house said, the NBFC crisis is largely behind, but consolidation could take another 1-2 years. The bank is pushing CASA growth via new channels, it added.
The succession planning is underway, but Managing Director, Aditya Puri can get an extension if the age limit is raised to 75 years, it said.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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