KR Choksey's research report on HDFC Bank
Advances at INR 6,583 bn were up 18.7% yoy/4.3% qoq. NII grew by 18% yoy/3% qoq to INR 106.6 bn, slightly below past average yoy growth of 21% (over last 8 quarters). NIMs came in slightly below expectations – core NIM at 4.3%. However, the management has guided for NIMs to stay within 4.1-4.4% range going forward. Non-interest income grew by 23% yoy/9% qoq to INR 42.3 bn, driven by third party products and card fee income.
Outlook
The bank has continued to display strong earnings growth momentum, supported by strong advances growth, stable NIMs, steady cost structure and low credit costs. We expect the bank to continue its growth momentum on back of strong retail franchise along with market share gains in the corporate segment. We factor in capital raise of INR 240 bn in FY19 and value the bank at 4.4x FY19E ABV, translating into value per share of INR 2,346. We recommend BUY.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
