Buy HDFC Bank; target of Rs 1650: ICICI Direct

ICICI Direct's research report on HDFC Bank

HDFC Bank is a leading private sector bank with consistent growth and operational performance over various cycles. The bank has maintained superior return ratios compared to its peers resulting in premium valuations. Largest private sector bank with loan book of Rs 13.7 lakh crore • Consistent performance with +4% NIM and +15% RoE in past many years.

Outlook

We remain positive and retain our BUY rating on the stock. We lower our target multiple on HDFC Bank at ~3x FY24E ABV & Rs 50 for subsidiaries; thus reducing our TP from Rs 2000 to Rs 1650.