Recommend hold for HDFC Bank: Gaurang Shah

In a chat with ET Now, Gaurang Shah, VP, Geojit BNP Paribas Financial Services, shares his views on HDFC Bank.

ET Now: Your first reaction to HDFC Bank, numbers are in line with estimates, asset quality has been stable, the overhang on the FIPB approval is still leading to the under performance on the stock what do you do here, what are you advising clients?

Gaurang Shah: We have recently come out with overall view on the banking and NBFC segment and wherein we have upgraded the targets for most of the private sector banks and HDFC is one of them.

A target stand at about close to 800-820 and our belief is that the performance that we have seen over the last couple of quarters has been quite consistent though there has been a slight bit of deterioration.

Given the way both HDFC and HDFC Bank has created value for an individual portfolio, my understanding is that notwithstanding what happens in the short term, if you look at the long term then definitely both these stocks they add value to an individual’s portfolio. so I would say hold on to it.