Accumulate HDFC ; target of Rs 1690: Prabhudas Lilladher

Zydus Wellness | Brokerage: Sharekhan | Rating: Buy | Target: Rs 1,472 | Return: 18 percent

Prabhudas Lilladher's research report onHDFC

HDFC’s 4QFY17 net income was a slight beat on estimates at Rs 20.4bn (PLe: Rs 19.9bn) on back of lower opex and tax rate. Overall, loan book grew at 16.2% mainly led by non‐individual book, while individual loans continue to grow on softer trajectory of 13‐ 14%. Management reiterated it would target to grow overall loan book at 15‐16% with non‐individual growing at 15‐18%.

Outlook

We believe, capital will be not be a constraint as warrants issued earlier are likely to get converted to equity, helping it raise Rs50bn, which we have factored in FY18 estimates. We maintain Accumulate with increased PT of Rs 1,690 (from Rs 1,454) as we roll over our SOTP to Mar‐19.

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