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. results were in-line with net interest income and pre-provision operating profit growth at 1.5%/20% YoY on merged basis and stable net interest margin QoQ at 3.4%.
Operating metrics benefitted from one-time gain through Credila stake sale at Rs 73 billion. Benefits of tax reversal (Rs 44 billion) and stake sale gains were nullified by Rs 109 billion of floating provisions.
Management remains confident of continued market share gains in deposits (+7.5% QoQ) and guides stable net interest margin in the interim. Key lever for any NIM expansion would be loan mix change.
HDFC Bank let go both loans and deposits in recent quarters due to irrational pricing.
We build in earnings compound annual growth rate of 18% over FY25-26E and tweak our earnings estimates, maintaining ‘Buy' rating with unrevised target price of Rs 2000.
We value standalone bank at 2.5 times FY26E price-book value and add value of subsidiaries.
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.
