Accumulate HDFC Bank; target of Rs 1257: Arihant Capital

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

HDFC Bank posted much better than expected Q1FY21 results with Net Interest Income stood at Rs 15,665 Cr increasing by +17.8% YoY/+3.0% QoQ, PPOP stood at Rs 12,829 Cr increasing by +15.1% YoY/down 1.0% QoQ and Net Profit stood at Rs 6,659 Cr, increasing by +19.6% YoY/down 3.9% QoQ. The bank made provisions of Rs 3,892 Cr for Q1FY21 against Rs 3,784 Cr Q4FY20, with Rs 1,000 Cr as contingent provisioning for Covid-19 impact which is in excess of RBI guidelines. On the business front, the bank’s loan book grew by +20.9% YoY/+1.0% QoQ to Rs 10.03 lakh Cr while deposits grew smoothly by +24.6% YoY/+3.7% QoQ to Rs 11.89 lakh Cr on account of the bank’s strong customer loyalty and changed consumption behaviour. The advances growth was driven primarily by the substantial growth in the corporate lending at +37.6% YoY while retail lending growth slowed to +7.2% YoY owing to the bank’s strict credit lending measures.

Considering the macro-economic slowdown, we have revised our estimates for the bank’s growth in the near term with loan book growth at below 10% for FY21. We assign a P/Adj. BV multiple of 3.5 for FY22 ABVPS of Rs 359 for a target price of Rs 1,257 per share and recommend ACCUMULATE rating on the stock.

Read More