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Buy HDFC Bank; target of Rs 1400 : Motilal Oswal

Motilal Oswal is bullish on HDFC Bank recommended buy rating on the stock with a target price of Rs 1400 in its research report dated October 18, 2020.
Oct 19, 2020 / 11:55 AM IST

Motilal Oswal 's research report on HDFC Bank


HDFC Bank (HDFCB) reported a strong performance, with advances growth driven by corporate; select retail segments also showed signs of recovery, with credit card growing at 6% QoQ. Operating performance remained stable, led by steady business growth and cost control. However, margins moderated 20bp QoQ on account of higher liquidity and a change in the asset mix. The bank further shored up provisions as it provided for INR23b toward potential NPA (not declared due to the SC order) and other contingent provisions.


Outlook


We estimate a 19% PAT CAGR over FY20–FY23E, with ROA/ROE at 2.0%/17.8% for FY23E. Maintain Buy, with revised TP of INR1,400 (3.1x Sep’22E ABV).


For all recommendations report, click here


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first published: Oct 19, 2020 11:55 am
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