Buy HDFC Bank, target Rs 2470: Sharekhan

Sharekhan has a buy call on HDFC Bank Ltd. with a target price of Rs 2470. The current market price of HDFC Bank Ltd. is Rs 2123.8. Time period given by the brokerage is a year when HDFC Bank price can reach the defined target. HDFC Bank Ltd., incorporated inr 1994, is a banking company with a market cap of Rs 552953.86 crore.

Investment rationale by Sharekhan
HDFC Bank has been a strong performer for a long time. We expect this momentum to continue as the environment is conducive for private banks such as HDFCBK and there are many opportunities to boost business growth and grab market share. In addition, subsidiaries such as HDB Services and HDFC Securities add to overall value and in time can grow to important value contributors, which may not be aptly captured in market valuations as of now.
Valuation: HDFCBK currently trades at 4.0x its FY2020E BVPS, which is reasonable for a consistently well-performing bank. We maintain our Buy rating on the stock with a revised price target (PT) of Rs. 2,470.