Buy HDFC Bank Ltd., target Rs 1500.0 : Bank of America Merrill Lynch

Bank of America Merrill Lynch has Buy call on HDFC Bank Ltd. with a target price of Rs 1500.0. The current market price of HDFC Bank Ltd. is 1226.0. Time period given by analyst is year, when HDFC Bank Ltd. price can reach defined target. BofA-ML maintains a buy rating on HDFC bank post June quarter results with a 12-month target price of Rs 1500. The net profit was largely in line with estimates while operating earnings managed a 2 per cent beat driven by topline beat by 3 per cent. The retail loan growth was stronger at 24 per cent YoY led by home and auto segment. The fee growth came in tad lower due to lower third-party fees and forex fees. The CASA remains stable at 40 per cent levels, with savings deposits growing at 22 per cent on a YoY basis. The global investment bank expects 23 per cent earnings per share (EPS) CAGR in FY16-19 from strong growth, high capital & good asset quality.