NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
HDFC Bank Ltd. reported better than expected operating profits (+9% YoY) driven by lower opex and improved fee lines. Though slippages were contained at 1.3%, credit costs increased to 55 bps. Reversal of Rs 6.9 billion AIF provisions, however, helped better-than-expected PAT growth at 5% YoY.
Net interest margin was stable QoQ at 3.46% and is expected to be rangebound.
HDFC Bank's decision to slow down on the cards book has worked well and it is not witnessing any overly asset quality concerns. Moreover, it is seeing improved retail disbursals, although it will take time to reflect in books.
LDR to normalize to pre-Covid levels in two-three years now, given the regulatory commentary and credit environment.
We tweak earnings post factoring in lower growth, offset by moderation in opex.
Maintain ‘Accumulate' rating with revised target price of Rs 1950 (Rs 1800 earlier), valuing standalone bank at 2.3 times Sep-26E price-to-book value and adding value of subsidiaries. Rise in target price is mainly driven by higher subsidiary valuations.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
