Moneycontrol PRO

Buy HDFC Bank; target of Rs 1958: Edelweiss

Edelweiss' is bullish on HDFC Bank has recommended buy rating on the stock with a target price of Rs 1958 in its research report dated July 24, 2017

July 27, 2017 / 12:14 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Edelweiss' research report on HDFC Bank

HDFC Bank’s Q1FY18 PAT of INR38.9bn (up >20% YoY) came lower than our estimate on higher credit cost, while revenue maintained momentum and limited the overall impact. Uncharacteristically, GNPLs rose by 19bps QoQ to 1.24% (still best-in-class), but >60% of the contribution was from agri portfolio (effects of farm loan waiver) which seemingly is non-recurring and slippages should normalise henceforth. Having said that, key highlight was the bank’s continued traction in core operating profitability (up >25% YoY).

Outlook

At CMP, the stock is trading at 3.8x FY19E P/ABV and 20.9x FY19E P/E. We maintain ‘BUY/SO’ with TP of INR1,958 (4.2x FY19E P/ABV).

For all recommendations report, click here

Close

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.

first published: Jul 27, 2017 12:14 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark