'Buy' HDFC Bank Shares Maintains Motilal Oswal Post Steady Q1 Results — Check Target Price

HDFC Bank reported a Q1 FY26 profit of Rs 181.6 billion (12% YoY growth, 4% beat), aided by tax reversals (tax rate of 15%). Net interest income grew 5% YoY to Rs 314.4 billion (3% miss). Margin on total assets contracted 11bp QoQ to 3.35% from 3.46% (adjusted for interest income on IT refund)..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. .Motilal Oswal Report.HDFC Bank Ltd. posted a steady quarter with a slight earnings beat due to tax reversals. The net interest margin contracted 11bp QoQ and is expected to moderate further in Q2 due to the rate cut impact. Business growth aligns with the bank’s strategy to reduce the credit/deposit ratio consistently, though the bank indicated it would improve its credit growth trajectory moving forward. Slippages increased mainly due to agri seasonality, while provision coverage ratio was stable at ~66.9%. Further, HDFC Bank has prudently utilized the stake sale gains in its subsidiary HDB Financial and made floating provisions of Rs 90 billion and contingency provisions of Rs 17 billion to take the total stock of such provisions to Rs 366 billion (1.4% of loans). The gradual retirement of high-cost borrowings, along with an improvement in operating leverage and the provision buffer, will support return ratios over the coming years. We tweak our earnings estimates and project HDFC Bank to deliver an FY27E RoA/RoE of 1.9%/14.9%. Reiterate Buy with a target price of Rs 2,300 (premised on 2.6x FY27E adjusted book value + Rs 284 for subsidiaries)..Click on the attachment to read the full report:.DISCLAIMERThis 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.

'Buy' HDFC Bank Shares Maintains Motilal Oswal Post Steady Q1 Results — Check Target Price

Motilal Oswal reiterates 'Buy' rating on HDFC Bank and hikes target price.

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