Buy HDFC Bank, target price Rs 1800: Motilal Oswal

Motilal Oswal has buy call on with a target price of Rs 1800. The current market price of HDFC Bank Ltd. is Rs 1511.2. Time period given by analyst is one year when HDFC Bank Ltd. price can reach defined target.
HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 829727.99 Crore).

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 40909.49 Crore, up 2.69 % from last quarter Total Income of Rs 39838.73 Crore and up 6.85 % from last year same quarter Total Income of Rs 38287.17 Crore. The bank reported net profit after tax of Rs 8433.78 Crore in latest quarter.

Investment Rationale
HDFC Bank continues to deliver better growth trends v/s its peers, led by healthy trends in Wholesale advances. Also, Retail deposit trends remain healthy, while a sharp sequential drop in Wholesale deposits affected deposit growth in 1QFY22. In the near term, lifting of RBI restrictions and new stress formation due to the second COVID wave would be a key monitorable. It maintains Buy rating with a TP of INR1,800/share (3.5x FY23E ABV).

Promoter/FII Holdings
Promoters held 26 per cent stake in the company as of March 31, 2021, while FIIs held 40.1 per cent, DIIs 20.7 per cent and public and others 13.2 per cent.