Buy HDFC Bank; target of Rs 1500: Motilal Oswal
Motilal Oswal is bullish on HDFC Bank recommended buy rating on the stock with a target price of Rs 1500 in its research report dated October 27, 2020.
November 02, 2020 / 12:52 PM IST
Motilal Oswal's research report on HDFC Bank
HDFC Bank (HDFCB) has built an exceptional banking franchise, powered by flawless execution. It consistently challenges the status quo - as reflected in its product and digital innovation - and yet persistently adheres to the basics of banking with regard to underwriting standards. The bank has reported remarkable improvement in collection efficiency, to 97% of pre-COVID levels, and is well-placed to gain incremental market share on both the asset and liability fronts.
We estimate HDFCB to deliver a ~19% PAT CAGR over FY20-FY23E, with ROA/ROE at 2.0%/17.8% for FY23E. Maintain Buy, with revised TP of INR1,500 (3.3x Sep'22E ABV).
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