Buy HDFC Bank; target of Rs 1800: Sharekhan

Sharekhan is bullish on HDFC Bank has recommended buy rating on the stock with a target price of Rs 1800 in its research report dated October 04, 2022.

Broker Research
October 06, 2022 / 10:29 AM IST

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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Sharekhan's research report on HDFC Bank


HDFC Bank released its Q2FY2023 business update, wherein total advances grew at a healthy pace of 23.5% YoY vs. 21.6% YoY in Q1FY2023. Sequentially also, advances grew by 6.1% vs. 1.9% in Q1FY2023 to Rs. 13.95 trillion. As per the bank’s internal classification, retail loans grew by 21.5% YoY/5% QoQ. Commercial and rural banking continued to remain strong (up 31.5% YoY/9.5% QoQ). Corporate and the other wholesale book also witnessed healthy growth of 27% YoY/ 9% QoQ. The bank’s deposit base rose by 19.0% YoY/4.3% QoQ to Rs. 16.7 trillion. CASA deposits grew by 15.4% YoY/3.4% QoQ. CASA mix declined by 40 bps QoQ to 45.4%. Retail/Wholesale deposits grew by 20.5%/12.5% YoY and 5.5%/down 0.5% QoQ.


Outlook


At the CMP, the bank trades at 2.7x and 2.3x its FY2023E and FY2024E Core BV, respectively. We maintain our Buy rating on the stock with an unchanged PT of Rs. 1,800.


More Info


At 10:24 hrs HDFC Bank was quoting at Rs 1,453.15, up Rs 0.55, or 0.04 percent.


It has touched an intraday high of Rs 1,462.10 and an intraday low of Rs 1,446.00.


It was trading with volumes of 23,878 shares, compared to its thirty day average of 273,071 shares, a decrease of -91.26 percent.


In the previous trading session, the share closed up 2.81 percent or Rs 39.75 at Rs 1,452.60.


The share touched its 52-week high Rs 1,724.30 and 52-week low Rs 1,271.75 on 18 October, 2021 and 17 June, 2022, respectively.


Currently, it is trading 15.73 percent below its 52-week high and 14.26 percent above its 52-week low.


Market capitalisation stands at Rs 809,398.60 crore.


For all recommendations report, click here


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HDFC Bank - 061022 - khan

Broker Research
Tags: #Buy #HDFC Bank #Recommendations #Sharekhan
first published: Oct 6, 2022 10:29 am