HDFC Bank Ltd. share price target

Advances growth moderated to 17% YoY at | 829730 crore, which was dragged by a slowdown in both retail (16% YoY) & corporate book (18% YoY), resulting in a decline in CD ratio (87% vs.89% in Q4FY19). Within retail, slowdown in auto book (8.5% YoY) & moderation of unsecured book (personal at 25% YoY & credit card at 29% YoY) impacted growth. Corporate growth moderated led by higher repayment & lower redeployment. Deposits growth continue to remain healthy at 18.5% YoY to | 954554 crore led by strong growth of ~23% YoY in term deposit. CASA growth continued to...

HDFC Bank posted mixed Q1FY2020 results with reasonably strong operating parameters, but softening of NIM and higher provisions moderated the performance. Net interest income (NII) grew by 22.9% y-o-y and operating profit grew by 28.9% y-o-y. However, provisions increased by 60.4% y-o-y and 38.3% q-o-q, as management chose to be conservative and made higher contingent (for agri/unsecured book) provisions. Notably, core cost-to-income ratio (Calc. C/I) for HDFC Bank further improved to 39% (contracted by 193 BPS y-o-y),...

HFC/NBFC along with other sectors on caution from slowing economy strong core operating performance was utilized by the bank to undertake loan book. Business growth was slower both from retail & wholesale with some segments slowed cautiously, while some on back of slowing economy....

HDFC Bank's (HDFCB) Q1FY20 PAT at Rs 56bn (+21% YoY) was largely in line with our estimates

We attended HDFC Bank's (HDFCB) Annual Analyst Meet, wherein the bank highlighted the progress that its different businesses are making and the steps being undertaken to maintain its strong competitive positioning and deliver sustainable growth. HDFCB remains confident about its strategy to deepen presence in the suburban and rural regions and offer full product suite to customers. Moreover,the bank highlighted that its strong analytics, faster turnaround time and targeted customer servicing will ensure enhanced relationship value in metro/urban regions.

Reliance Industries' (RIL) Q4FY19 EBITDA was in line at Rs 208bn (+13% YoY, 2% QoQ). Key highlights were higher GRMs at US$ 8.2/bbl (US$ 7.7 est.) and retail business EBITDA at Rs 19.2bn (+77% YoY). RJio's subscriber traction remains robust, while the transfer of ~Rs 1.3tn in assets to the InvIT has pared debt. We raise FY20E/FY21E earnings by 5.4%/13.2% to bake in stronger RJio & retail profitability and roll over to a new Mar'20 TP of Rs 1,510 (vs. Rs 1,300), but cut our rating from BUY to ADD post the recent run-up....

In Q4FY19 profitability numbers for HDFC Bank have come largely in line with our estimates. PAT growth has been 23% YoY following the same trajectory in NII. Loan growth is healthy at 24% YoY along with stable NIMs of 4.3%. Fee income growth remained muted at 10%. Slippages are back to 1.8% as against 2.1% last quarter. We have retained our estimates unchanged for FY20 and introduce our estimates for FY21. We roll over to FY21 and maintain BUY rating with new TP of Rs2,870 (Rs2,500 earlier) valuing the stock at 4.1x (20% premium to 10 year mean) P/ABV FY21. Key Highlights and Investment Rationale...

HDFC bank reported a healthy quarter with a profit growth of 23% YoY contributed by 1) a stellar asset quality and credit costs and 2) steady NIMs. The bank's asset quality improved 2 bps to 1.36%, likely to have been aided by waning stress in agriculture portfolio. Advances for the bank grew 25% and deposits at 17% YoY. We believe the bank is expected to continue to grow at CAGR 25% and improve its return metrics on the back of lower credit costs. We continue to like the franchise and the banks is likely to remain better placed on the key constraints facing the segment i.e....

HDFC Bank registered a 24% rise in Interest income to Rs 26333.25 crore in the quarter ended March 2019. A 24% rise in interest expenses to Rs 13243.76 crore saw net interest income (NII) grow 23% to Rs 13089.49 crore. Other income grew 15% to Rs 4871.21 crore, which took net total income up 21% to Rs 17960.70 crore. Operating expenses increased 18% to Rs 7117.10 crore, after which OP grew 23% to Rs...

sequential improvement in NIMs as well, made more attractive as the bank also saw a sequential improvement on the asset-quality front. During the quarter, net interest income (NII) of HDFC Bank grew by 22.8% y-o-y to Rs. 13,089 crore, which was marginally below expectations. This is in the backdrop of the bank's strong advances growth of 24.5% y-o-y (sustained over...