Moneycontrol
Last Updated : Jan 15, 2018 04:29 PM IST | Source: CNBC-TV18

Mayuresh Joshi positive on HDFC, HDFC Bank

Mayuresh Joshi of Angel Broking positive on HDFC and HDFC Bank.

CNBC TV18 @moneycontrolcom

Mayuresh Joshi of Angel Broking told CNBC-TV18, "The entire sense in terms of the book value going up is going to be extremely accretive for HDFC shareholders. On the other hand if you look at the investments that they have done in all their subsidiaries and the valuation that all these subsidiaries derive, I think there is significant amount of traction that still can be derived in terms of an SOTP value."

"If you look at the standalone business itself, with the kind of capital raising and even if a part goes back into the HDFC Bank QIP, I think the bank is also growing at a phenomenal pace. Again on the base even if it grows 20-25 percent odd, along with impeccable asset quality which is right there in the top quartile, you are probably looking at earnings growth happening from a book value perspective as well to be happening at a very fast clip."

"In terms of the core business model for HDFC, I think it is absolutely bang on target. So, the loan growth that we probably see in the spreads of around 2.25-2.3 percent can very well be maintained, asset quality is again extremely impeccable at this point of time."

"A large element in terms of expectations of loan growth continuing with corporates again having some amount of say in terms of accreted loan growth along with individuals probably growing at a very fast clip, I think it should be very accretive. So, long term investors who probably hold on to these stocks should continue holding both the stocks. We have been extremely positive on HDFC as well as HDFC Bank," he said.
First Published on Jan 15, 2018 04:27 pm
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