HDFC looking at a target price of Rs 825 in mid term: Ajay Bodke

In a chat with ET Now, Ajay Bodke of Prabhudas Lilladher shares his views on HDFC bank.

ET Now: Do you think HDFC Bank at the current juncture could be a deep contra bet?

Ajay Bodke: It is one of the top picks that we have been advocating investors because we are looking at a target price of around 825 in the medium term. The only reason why the stock has not participated as vigorously as some of the other private sector banks is the fact that FIIs cannot buy into it but as and when the new government takes over, a call will have to be taken on HDFC Bank and from that perspective, we are expecting HDFC Bank to do quite well in the medium term.

We are expecting around 21% growth in earning CAGR for FY15 and FY16 for HDFC Bank and the company has one of the highest ROEs in the business which should form part of the core portfolio especially if you are expecting the India story to pan out over next two-three years.