Accumulate HDFC Bank; target of Rs 1860: KR Choksey

KR Choksey recommended accumulate rating on HDFC Bank with a target price of Rs 1860 in its research report dated July 23, 2024.

Broker Research

July 23, 2024 / 15:27 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

KR Choksey's research report on HDFC Bank

Net Interest Income (NII) for Q1FY25 stood at INR 298,371 Mn, a growth of 26.4% YoY/ 2.6% QoQ. NII was in line with our estimates. Pre-Provision Operating Profits (PPOP) grew 27.2% YoY (-18.4% QoQ) to INR 238,846 Mn, with operating income growing by 23.4% YoY. PPOP was in line with our estimates. Net profit for Q1FY25 stood at INR 161,748 Mn, a surge of 35.3% YoY (-2.0% QoQ) led by healthy operating performance. The net profit for the quarter was 2.0% higher than our estimates.

Outlook

We have assigned an Adj P/B multiple of 2.2x (earlier 2.0x) on the FY26E Adj Book value for the core banking business and subsidiaries value of INR 214 per share, resulting in a target price of INR 1,860 per share (earlier INR 1,714), an upside of 13.2% over the CMP. We have maintained our “ACCUMULATE” rating on the shares of HDFC Bank Ltd.

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