Buy HDFC Bank, target price Rs 1955: ICICI Securities
HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 740412.90 Crore).
By ETMarkets.com | Updated:
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ICICI Securities has buy call on HDFC Bank with a target price of Rs 1955. The current market price of HDFC Bank Ltd. is Rs 1356.5. Time period given by analyst is one year when HDFC Bank Ltd. price can reach defined target.
HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 740412.90 Crore).
HDFC Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2020.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 43960.45 Crore, up 1.37 % from last quarter Total Income of Rs 43364.96 Crore and up 7.46 % from last year same quarter Total Income of Rs 40909.49 Crore. The bank reported net profit after tax of Rs 10443.01 Crore in latest quarter.
Investment Rationale
HDFC Bank’s (HDFCB) FY22 annual report is once again themed on ‘Leading Responsibly’, focusing on reimagining the future with technology and a service- first culture. The CEO’s (Sashidhar Jagdishan) message is similar to what was articulated during the analyst day on 31st May’22 highlighting why this is an opportune time to fructify the merger given housing loan growth opportunity with deeper penetration, regulatory convergence, conducive market development, pricing convergence, portfolio rebalancing, enhanced cross-sell, etc. Annual report states: 1) Growth runway is huge; potentially add HDFC Bank every five years. Proposed merger adds an entirely different dimension to the future. 2) There may not be any need to raise further funds to meet reserve requirements. 3) Plans to nearly double its network in next 3-5 years by opening 1,500 to 2,000 branches every year. 4) Bank will continue to invest in modern technology and talent.
Promoter/FII Holdings
Promoters held 25.78 per cent stake in the company as of 31-Mar-2022, while FIIs owned 43.0 per cent, DIIs 17.19 per cent.
HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 740412.90 Crore).
HDFC Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2020.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 43960.45 Crore, up 1.37 % from last quarter Total Income of Rs 43364.96 Crore and up 7.46 % from last year same quarter Total Income of Rs 40909.49 Crore. The bank reported net profit after tax of Rs 10443.01 Crore in latest quarter.
Investment Rationale
HDFC Bank’s (HDFCB) FY22 annual report is once again themed on ‘Leading Responsibly’, focusing on reimagining the future with technology and a service- first culture. The CEO’s (Sashidhar Jagdishan) message is similar to what was articulated during the analyst day on 31st May’22 highlighting why this is an opportune time to fructify the merger given housing loan growth opportunity with deeper penetration, regulatory convergence, conducive market development, pricing convergence, portfolio rebalancing, enhanced cross-sell, etc. Annual report states: 1) Growth runway is huge; potentially add HDFC Bank every five years. Proposed merger adds an entirely different dimension to the future. 2) There may not be any need to raise further funds to meet reserve requirements. 3) Plans to nearly double its network in next 3-5 years by opening 1,500 to 2,000 branches every year. 4) Bank will continue to invest in modern technology and talent.
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Promoter/FII Holdings
Promoters held 25.78 per cent stake in the company as of 31-Mar-2022, while FIIs owned 43.0 per cent, DIIs 17.19 per cent.
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