Buy HDFC Bank; target of Rs 1406: Prabhudas Lilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on HDFC Bank

HDFCB reported strong PAT of Rs74.2bn (in-line with PLe: Rs73.8bn) on back of strong other income (led by fees/treasury/recovery) and full benefit of tax rate, although bank has been using the benefit for higher contingency provisions (Rs7.0bn addl) for agri slippages and this quarter for fully provide for couple of corporate account slippages. This has also led to slight deterioration in asset quality. Important highlight of quarter was slowing NII growth rate which came at 13% YoY mainly on excessive liquidity carried on b/s and slower growth in high yielding loan segments. We expect this phenomenon should continue for another quarter and thereafter see better prospects as macroeconomics improve especially in semi-urban & rural areas, while bank benefitting from strong positioning maintained on liabilities.

Outlook

We retain BUY with TP of Rs1,406 (unchanged) based on 3.7x Sep-21 ABV.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More