Buy HDFC Bank Ltd., target Rs 1550.0 : Bank of America Merrill Lynch

Bank of America Merrill Lynch has Buy call on HDFC Bank Ltd. with a target price of Rs 1550.0. The current market price of HDFC Bank Ltd. is 1250.5. Time period given by analyst is year, when HDFC Bank Ltd. price can reach defined target. HDFC Bank is the best positioned to capitalize on the growth opportunities as it leverages its expanding distribution and Tier I of +13%. HDFC Bank trading at PB multiple (3.9x FY17 adjusted book) can arguably trade at least at 1.1SD above average (or 4.1x) one year forward given its strong growth trajectory, high capital and good asset quality. Hence, maintain our Buy and new PO at Rs1,550 and US81.8 for ADR. Alternatively, PO is 21.1x our FY18E EPS for net profit CAGR of 23%+