Buy HDFC Bank, target price Rs 1420: Geojit

Geojit has given a buy rating to HDFC Bank with a target price of Rs 1420. The share price moved down by 0.77 per cent from its previous close of Rs 1247.05. The stock’s last traded price is Rs 1237.50.

HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 681288.67 Crore).

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated Interest Income of Rs 25119.76 Crore, down -3.30 % from last quarter Interest Income of Rs 25978.00 Crore and up 3.23 % from last year same quarter Interest Income of Rs 24333.99 Crore. The bank has reported net profit after tax of Rs 7711.37 Crore in latest quarter.

Investment Rationale
Asset quality has remained steady, and is expected to improve in the coming months. Even as retail loan growth slowed down expectedly, the wholesale loan portfolio improved drastically. Banking on the upcoming festive season to reflect positively on HDFC Bank’s earnings in the near term.

Promoter/FII Holdings
Promoters held 26 per cent stake in the company as of Sept 30, 2020, while FIIs held 37.4 per cent, DIIs 33.9 per cent and public and others 2.7 per cent.