CLSA raises target price on HDFC Bank to Rs 1,830
Mumbai: CLSA has maintained buy rating and raised target price on HDFC Bank to Rs 1,830 from Rs 1,460 following the lender's fourth quarter results.
On Friday, HDFC Bank reported a 18.25% rise in net profit at Rs 3,990 crore for the quarter ended March 2017.
CLSA said the reported profit was a tad ahead of estimates. The improvement in business activity and 20 basis point expansion in net interest margins from a quarter ago were key positives of the quarterly results, said CLSA.
The brokerage said that slippages and credit costs were high in the quarter but stress loan ratio of 1.2% remains low.
"We see 21% Cagr in profit over FY17-20 led by topline growth and stable asset quality," noted CLSA.
On Friday, HDFC Bank reported a 18.25% rise in net profit at Rs 3,990 crore for the quarter ended March 2017.
CLSA said the reported profit was a tad ahead of estimates. The improvement in business activity and 20 basis point expansion in net interest margins from a quarter ago were key positives of the quarterly results, said CLSA.
The brokerage said that slippages and credit costs were high in the quarter but stress loan ratio of 1.2% remains low.
"We see 21% Cagr in profit over FY17-20 led by topline growth and stable asset quality," noted CLSA.