ICICI Securities retains 'hold'on HDFC Bank
ICICI Securities has raised its earnings estimates for HDFC Bank, but retained its 'hold' rating on the stock, saying it offered limited upsides from current levels.
By ET Bureau |
HDFC Bank
CMP: Rs 1,496.70
Target Price: Rs 1,453
ICICI Securities has raised its earnings estimates for HDFC Bank, but retained its 'hold' rating on the stock, saying it offered limited upsides from current levels.
"We raise our FY10E & FY11E earnings estimates for HDFC Bank at 5.3% and 8.2%, respectively, to factor in better operating environment than envisaged earlier, high capital owing to HDFC���s warrant conversion and net interest margin traction, due to improving CASA (current account, savings account)," said the ICICI Securities note to clients.
The brokerage has forecast an earnings per share (EPS) of Rs 64.1 for FY10 and Rs 80.7 for FY11. "We believe the asset quality stress will persist; however, it is likely to be lower than expected, going forward. Despite earnings traction and likely warrant conversion, the upside from the current levels is limited in our view," the note added.
CMP: Rs 1,496.70
Target Price: Rs 1,453
ICICI Securities has raised its earnings estimates for HDFC Bank, but retained its 'hold' rating on the stock, saying it offered limited upsides from current levels.
"We raise our FY10E & FY11E earnings estimates for HDFC Bank at 5.3% and 8.2%, respectively, to factor in better operating environment than envisaged earlier, high capital owing to HDFC���s warrant conversion and net interest margin traction, due to improving CASA (current account, savings account)," said the ICICI Securities note to clients.
The brokerage has forecast an earnings per share (EPS) of Rs 64.1 for FY10 and Rs 80.7 for FY11. "We believe the asset quality stress will persist; however, it is likely to be lower than expected, going forward. Despite earnings traction and likely warrant conversion, the upside from the current levels is limited in our view," the note added.
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