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.
Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.