Buy HDFC Bank; target of Rs 2400: Dolat Capital

Dolat Capital's research report on HDFC Bank

Steady quarter across parameter with advances growth of 25%, marginal NIM expansion and improvement in C/I and stable asset quality sequentially. We believe the bank is well placed to acquire market share from vacuum likely to be left by the withdrawal of NBFCs and is expected to remain relatively less sensitive to the current volatility. We value it at 3.8x FY20E P/ABV, implying 4.4x FY19E P/ABV (Buy).

Outlook

BUY on HDFC Bank: Backed by its robust underwriting skills and prudence, the bank is likely to remain unperturbed by the current volatility in financial markets. With an 28% CAGR in earnings, stable RoA, lower leverage and lower sensitivity to the market volatility we are Buyers.