Buy HDFC Bank, target price Rs 1295: LKP Securities

HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 595503.06 Crore).

BCCL - Non Copyright
Promoters held 26.10 per cent stake in the company as of June 30, 2020, while FIIs held 37.04 per cent, DIIs 17.82 per cent and public and other 19.04 per cent.
LKP Securities has given buy rating to HDFC Bank with a target price of Rs 1295. The share price moved up by 0.13 per cent from its previous close of Rs 1078.50. The stock’s last traded price is Rs 1079.85.

HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 595503.06 Crore).

Financials
The company reported a Consolidated Interest Income of Rs 25978.00 Crore, up 0.23 % from last quarter Interest Income of Rs 25919.24 Crore and up 10.26 % from last year same quarter Interest Income of Rs 23560.50 Crore. The bank reported net profit after tax of Rs 6940.88 Crore in latest quarter.

HDFC -graph

Investment Rationale
Despite certain top level attrition, the brokerage believes that the major overhang on the stock is behind and the Bank is expected to weather the current storm led by 1) healthy balance sheet growth, 2) much higher provision then regulatory requirement in the balance sheet, 3) strong capital cushion of 16.7% at CET1 level and d) best in class underwriting and risk management practices. Given these strengths the brokerage expects HDFC Bank to remain one of the best among all the lending business. Thus, it recommends BUY rating on the bank with target price of ₹1,295 (based on 3.0xFY22 Price to Adjusted Book Value).

Promoter/FII Holdings
Promoters held 26.10 per cent stake in the company as of June 30, 2020, while FIIs held 37.04 per cent, DIIs 17.82 per cent and public and other 19.04 per cent.


ADVERTISEMENT
READ MORE

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+