Buy HDFC Bank Ltd., target Rs 1420: CLSA

CLSA has Buy call on HDFC Bank Ltd. with a target price of Rs 1420. The current market price of HDFC Bank Ltd. is 1305.1. Time period given by analyst is year, when HDFC Bank Ltd. price can reach defined target. The CASA and digital initiatives are likely to aid long-term growth. The growth should remain healthy as it capitalises on demand for retail loans, said the global investment bank. The bank has seen some exits among product heads and staff retention will be a key for HDFC Bank in the near term, said the CLSA note. Two subsidiaries HDB Fin Services and HDFC Securities are growing well and now accounts for almost 5 per cent of consolidated net profit. CLSA expects earnings CAGR of 23 per cent over FY16-19CL.