ICICI Direct recommended hold rating on HDFC with a target price of Rs 2195 in its research report dated May 14, 2019.
ICICI Direct's research report on HDFC
HDFC reported loan growth of 13.1% YoY to Rs 406607 crore. Individual loan book which constitutes ~71% of the portfolio continue to grow at a healthy pace of 14.9% YoY at Rs 288819 crore. Growth in non-individual/ corporate portfolio slowed for 2nd consecutive quarter in a row to 8.4% YoY on back of unfavourable lending environment. Traction in individual loan book, after adding back loans sold in preceding 12 months came strong at 24% YoY.
Given the business strength, we value the core/ standalone segment at 2.5x FY21E ABV. Rolling over to FY21E estimates, we revise our SOTP (15% discount) based target to Rs 2195/ share (earlier Rs 2050). However, given recent headwinds, we change our recommendation on the stock from BUY to HOLD.
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.