Weekly Tactical Pick -- HDFC Bank
Current challenges are speed breakers, not a derailment, in HDFC Bank's journey upwards
July 23, 2021 / 10:25 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
The earnings growth of HDFC Bank (CMP Rs 1,450; Mcap: Rs 800,877 crore, Nifty: 15,824 ) in the June quarter was the lowest seen in many years. While the bank’s net profit increased by 16 per cent year on year (YoY) in the first quarter of FY22, it was marginally below the bank’s historic trend of 18-20 earnings growth. The disruption caused by the second wave of COVID-19 impacted profitability as the bank shored up provisions to deal with...