HDFC reported strong profitability higher than market estimates with stable loan growth and improvement in margins sequentially. PAT grew 3x YoY (1x QoQ) led by treasury gain on stake sale in Gruh. The Non-Individual book growth improved a bit to 6% vs 4% (Q2FY20), while Individual book grew ~16%. Despite the challenges in its core housing finance business, HDFC is able to garner its individual book and maintain asset quality at decent levels. We expect the same trend to continue and return ratios to improve once normalcy returns within the sector. Hence, we give ACCUMULATE rating on the stock with a SOTP based TP of Rs2,625 valuing parent business at Rs1,409 (3.1x...