Brokers’picks: Axis Bank, HDFC
Axis Bank reported 1Q earnings of Rs1,410 cr, yoy growth of 22%; in-line, driven by topline surprise and bumper treasury gains, which was neutralized by higher provisions.
By ET Bureau | Updated:
BoA–ML Maintains Buy on Axis Bank
TARGET: Rs 1,575
CURRENT PRICE: Rs 1201
Axis Bank reported 1Q earnings of Rs1,410 cr, yoy growth of 22%; in-line, driven by topline surprise and bumper treasury gains, which was neutralized by higher provisions.
Topline growth of 31%+ yoy was driven by a modest 16% loan growth (40% yoy in retail) and margins rising by a whopping 49/16bps yoy/qoq, partly due to capital raise done in Feb’13
Nomura Neutral on HDFC
TARGET: Rs 860
CURRENT PRICE: Rs 827
On a standalone basis, HDFC currently trades at 2.5x our FY14/15F ABV of Rs195.3
With the recent spike in market borrowing costs due to liquidity tightening by RBI, key factor to watch would be funding strategy ahead
Nomura PAT for FY14F is 5-6% below consensus due to higher retail loan share in the books of the bank
TARGET: Rs 1,575
CURRENT PRICE: Rs 1201
Axis Bank reported 1Q earnings of Rs1,410 cr, yoy growth of 22%; in-line, driven by topline surprise and bumper treasury gains, which was neutralized by higher provisions.
Topline growth of 31%+ yoy was driven by a modest 16% loan growth (40% yoy in retail) and margins rising by a whopping 49/16bps yoy/qoq, partly due to capital raise done in Feb’13
Nomura Neutral on HDFC
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TARGET: Rs 860
CURRENT PRICE: Rs 827
On a standalone basis, HDFC currently trades at 2.5x our FY14/15F ABV of Rs195.3
With the recent spike in market borrowing costs due to liquidity tightening by RBI, key factor to watch would be funding strategy ahead
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Nomura PAT for FY14F is 5-6% below consensus due to higher retail loan share in the books of the bank
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