Buy HDFC Bank; target of Rs 2400: Motilal Oswal

Motilal Oswal is bullish on HDFC Bank has recommended buy rating on the stock with a target price of Rs 2400 in its research report dated April 21, 2018.

Broker Research

April 23, 2018 / 17:26 IST

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Motilal Oswal's research report on HDFC Bank

HDFCB reported 24% YoY core PPoP growth (in-line; 21% PPoP growth on muted capital gains of INR220m), led by steady revenue growth and controlled opex. However, higher provisions (INR15.4b, 15% miss owing to a contingent provision towards an agri account) resulted in 20% YoY PAT growth.

Outlook

Operating expenses have been under control, and significant digital initiatives have led to a consistent decline in the C/I ratio to ~40%. We have built in INR240b of capital raise in FY19 and arrive at a TP of INR2,400 at 4.0x Mar-20E ABV for the bank. Maintain Buy.For all recommendations report, click here

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Broker Research

first published: Apr 23, 2018 05:26 pm

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