ICICI Direct is bullish on HDFC Bank has recommended buy rating on the stock with a target price of Rs 1100 in its research report dated April 20, 2020.
ICICI Direct's research report on HDFC Bank
The bank reported steady asset quality with sequential fall in GNPA at Rs 12650 crore & ~16 bps reduction in GNPA ratio to 1.26%. Excluding moratorium provided by RBI, GNPA would have been up 10 bps at 1.36%, still prudent. Till now only low single digit proportion availed moratorium and it can rise. Slippages were Rs 3150 crore (~0.3% of advances).
The bank continues to remain a portfolio stock and maintains premium valuations. Accordingly, we maintain BUY and maintain target price at Rs 1100 valuing the bank at ~ 15x FY22E EPS (2.74x FY22E ABV). We include Rs 75 per share for HDB Financial Services.
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