Buy HDFC Bank; target of Rs 1300:Prabhudas Lilladher

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26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on HDFC BankHDFCB reported steady quarter as loan growth continues to report healthy traction while net earnings grew 20% YoY on expected lines. Revenue growth was broadly in‐line though margin expansion by 10bp QoQ surprised positively, despite bank cutting base rate sharply (40bp in past four months). GNPL/NNPL increased by 11%/21% QoQ to Rs42.5 bn and Rs12.6bn respectively however there are no pending accounts to take care of as part of RBI's balance sheet clean up drive. HDFCB remains one of the top‐picks for us and we maintain ‘BUY’ with a revised PT of Rs1,300 (from Rs1,200) based on 3.8x Sep‐2017E ABV. Asset quality reported slight blip with GNPL/NNPL increasing by 11%/21% QoQ to Rs42.5 bn and Rs12.6bn respectively however there are no pending accounts to take care of as part of RBI's balance sheet clean up drive. Coverage ratio also thus declined by 250bp QoQ though floating provisions remain stable at ~Rs16bn. O/s restructured assets remain tiny at 0.1% of total loans. HDFCB remains one of our top‐picks and we revise PT to Rs1,300 (from Rs1,200) based on 3.8x Sep‐2017E ABV. For all recommendations, 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.

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