HDFC has target of Rs 750: Rajesh Agarwal

HDFC has one year target of Rs 750, says Rajesh Agarwal, Head of Research at Eastern Financiers Limited.

Agarwal told CNBC-TV18, "in HDFC - the profit numbers were not as expected, it was only 10% but that was due to higher interest cost and lower investment income. We have seen good loan book growth and net interest income has shown a growth and what has been surprising positively is 4.3% net interest margin, in this negative environment that was remarkable but going forward valuations seems to be on higher side when we compare to other companies of the same peer group like LIC Housing or GIC Housing."
He further added, "Going forward one year target would be around Rs 750 but we would prefer investing in LIC Housing or GIC Housing which is on a highly discounted valuation when we compare to HDFC. So I would recommend when you are trying to put new money in housing finance sector why not LIC or GIC."