Visible signs of pick-up in demand for mortgage loan led by improving affordability, attractive incentive from PMAY scheme and introduction of RERA augurs well for sustained growth in loan book for HDFC over the next 3-5 years. Further, the performance of its various financial business subsidiaries/associates has improved substantially over the last few quarters. HDFC has raised fresh equity via QIP and preferential placement in FY18 and incremental capital will help the company to participate in upcoming fund raising of HDFC Bank to retain its stake at 21% and create buffer for leveraging other organic and inorganic growth opportunities in domestic real estate and housing sector. Rolling over our valuation to FY20E, we reiterate...