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 15.0 lakh crore Consistent performance with +4% NIM and +15% RoE in past many years.
We remain positive and retain our BUY rating on the stock. HDFC Bank is expected to deliver higher than industry growth along with RoA of ~2% in FY25E. Rolling to FY25E, we value HDFC Bank at ~2.8x FY25E ABV & Rs 50 for subsidiaries and revise our target price from Rs 1750 to Rs 1920/share.