Sharekhan's research report on HDFC Bank
HDFC Bank clocked a PAT of Rs. 9,196 crore (up 19% y-o-y/ down 8.5% q-o-q) which was in line with consensus. However, PAT was 2% below our estimates mainly led by higher treasury losses. NII met expectations, rising by 14.5% y-o-y and 3.2% q-o-q led by healthy net advances growth of 21.6% y-o-y along with a pick-up in retail loans (21.7% y-o-y vs 15.2% y-o-y in last quarter). NIMs were stable q-o-q. Core PPoP grew by 14.7% y-o-y and 2.2% q-o-q. GNPA & NNPA rose 11.7% q-o-q / 10.9% q-o-q. GNPA/NNPA ratio`s rose sequentially by 11 bps/3bps reported at 1.28%/0.35% led by some stress in agri (due to seasonality factor) and in corporate book. Bank has good track record of execution capabilities and have consistently given healthy returns in terms of ROA irrespective of economic cycles and RoE consistently above cost of capital. Per management comment in Q1FY23 earning conference call, near-term focus would be on merger with HDFC Ltd in terms of regulatory dispensations. Stock trades at 2.6x and 2.2x its FY2023E and FY2024E core BV.
Outlook
We maintain Buy with an unchanged PT of Rs. 1800.
More Info
At 17:30 HDFC Bank was quoting at Rs 1,347.65, down Rs 16.20, or 1.19 percent.
It has touched an intraday high of Rs 1,365.80 and an intraday low of Rs 1,342.00.
It was trading with volumes of 1,083,946 shares, compared to its thirty day average of 294,411 shares, an increase of 268.17 percent.
In the previous trading session, the share closed up 0.93 percent or Rs 12.55 at Rs 1,363.85.
The share touched its 52-week high Rs 1,724.30 and 52-week low Rs 1,271.75 on 18 October, 2021 and 17 June, 2022, respectively.
Currently, it is trading 21.84 percent below its 52-week high and 5.97 percent above its 52-week low.
Market capitalisation stands at Rs 748,660.13 crore.
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