Buy HDFC Bank target of Rs 1735: 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’s earnings of Rs81.8bn saw a 6% miss from our estimates (PLe: Rs86.8bn) on higher contingency provisions of Rs13.0bn (Rs8.0bn for asset quality) and slightly slower NII. Although, PPOP saw a 5% beat led by good other income (treasury/recovery from w.off) and controlled opex growth. Asset quality was steady sequentially, although added Rs8.0bn to COVID contingency provisions (non PCR related) to take it to Rs58.0bn or 60bps of loans. High level financial indicators like cash flow improvements, increase in spends and increased customer additions continue to show robustness. While, certain deterrents have occurred like higher cheque bounces and few states pulling down collections. HDFCB remains a strong franchise with solid cross cycle asset quality and superior return ratios.

Outlook

We retain BUY with revised TP of Rs1,735 (from Rs1,690) based on 3.6x Mar-23 ABV. Out TP increase has been led by 2-3% increase in BV as bank has not declared any dividend for FY21 similar to FY20 and will await RBI guidelines on same.

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