Buy HDFC; target of Rs 2250: ICICI Direct

 ICICI Direct's research report onHDFC Ltd

HDFC’s results were healthy on asset quality, growth & spreads front In Q3FY18, HDFC Ltd received | 5250 crore from its stake sale in HDFC Life. Out of this, RS1575 crore has been provided as additional special provision.  Factoring this exceptional gain, standalone PAT surged to | 5670 crore. PBT came in line at RS 6490 crore  but lower  than expected tax expenses led to  a relatively  higher bottom line Asset quality remained steady QoQ with GNPA at 1.15% (GNPA - RS 3937 crore). NNPA remained nil

Outlook

We revise our SOTP based target price higher to RS 2250/share (RS 20 80 /share) earlier. We retain our BUY rating on the stock. HDFC remains a portfolio stock.

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