HDFC Bank share price jumps 4%, profits sailing strong but story could change, should you buy or sell

- Best Investment Advisor in India
- Business
- Commodity Market
- Currency
- Equity Market
- FII based calls
- Foreign Markets
- Genuine stock tips provider
- Intraday trading tips
- Intraday trading tips & Strategies
- Investment adviser
- Investments
- IT Industry
- Most accurate stock tips provider
- News
- NSE F&O
- Operator based calls
- Politics
- Portfolio Management Services
- promotions
- SEBI Registered advisory company
- Stock Market
India’s biggest private-sector lender, HDFC Bank, reported a 15.5% jump in profits, on-year basis as net interest income for the January-March quarter surged to Rs 15,204 crore. With HDFC Bank’s fortified balance sheet, it is safe to say that the lender is not positioned just fine to deal with the storm that is about to hit the financial sector. HDFC Bank has not only seen a strong 21.3% growth in advances but deposits have jumped 24.3% along with a reduction in gross non-performing assets (NPA) to 1.26%. With such strong numbers, brokerages are not shying away from putting a ‘buy’ call on the scrip.
“Undoubtedly, HDFC Bank is better positioned to weather the storm; however, in times of economic dislocation, it is sensible to remain conservative assessing the multiplier adverse effect of Covid-19. We, therefore, anticipate the bank’s loan growth to moderate to 12%, NIMs to contract by 9bps (due to focus on quality) and credit cost to be elevated at 1.7% in FY21E,” said ICICI Securities in a research note. With this, the brokerage has trimmed its earnings estimate by 19% and pruned the target multiple to 3.4 times FY22 PA/BV and revised the target price to Rs 1,139 per share.
The brokerage firm noted that the asset quality has improved as GNPAs decline 16 BPS, however, of these 10 BPS were helped by the moratorium effect. “On a positive note, proportion of retail customers opting for moratorium is in low single-digit and, of that, 95-98% were not in default,” the report said. HDFC Bank’s balance sheet maintains strong liquidity with LCR at 138% and CAR of 18.5% against the 11.08% regulatory requirement.
“Frankly, we would not classify the bank’s disclosed assumptions on its stress test as anything remotely resembling a bedrock scenario,” said Edelweiss Securities in a research report on HDFC Bank post the quarterly results. The private lender remains one of the top picks from the sector for Edelweiss. Apart from the provisions spiking, there not a shred of evidence that hints that the bank is feeling the economic pain of the coronavirus aided disruptions. “This robustness of currently reported fundamentals is unsurprising,” said the brokerage, while highlighting that risk asset accretion will slow and margin will bear the brunt of weaker pricing, lower leverage, higher liquidity and loan mix derisking. “Critically, Q2FY21 should also bring greater visibility on true asset quality impact.”
With a lower target price than the other two brokerages, JM Financial says that HDFC Bank is one of the only two buy-rated names in their coverage. “Valuing the bank at 2.6x FY22E BVPS, with subsidiaries contributing INR 55 per share. We favour HDFCB for its relatively lower asset quality risks, strong liabilities defence, and high capital base,” JM Financial said. Taking a look HDFC Bank’s wholesale SME book, 77% of this book is collateralized by real estate. 65% of the book is self-funded. HDFC Bank’s unsecured loan portfolio has superior asset quality to the rest of the industry.
- To know more about us or our services,
- kindly visit www.buildcaps.com
- Best Investment adviser in India & Genuine Stock advisory company.
#1 stock adviser in India 100% Sureshot operator calls Accurate stock tips provider Best Equity Portfolio Management Best Intraday calls provider Best Intraday Tips Best intraday tips in indian stock market Best Intraday tips provider Best Investment adviser in India Best online trading tips Best Options tips provider Best PMS company in India Best PMS Services in India Best Portfolio Management services Best Portfolio Management services in India Best returns in PMS Best SEBI registered advisory company Best SEBI registered investment advisor Best SEBI registered stock advisory company Best Share Market intraday tips Best stock advisor Best stock advisor websites Best stock advisory company in India Best stock tips provider Best stock tips provider in india Best tips provider in India Fund Operator calls Genuine stock market tips provider Genuine stock tips provider how to earn profit in stock market India no 1 stock advisory company India’s top rated advisory company India’s top rated Stock tips provider Intraday calls in stock future Intraday calls in stock market Intraday Sureshot tips Intraday Sureshot tips provider Intraday trading tips in stock market Most accurate investment adviser in India Most Accurate stock tips provider Most successful advisory company in stock market Most successful stock advisors in india Operator based calls Operator based intraday stock tips Operator based intraday tips Operator based options tips Operator based sureshot calls Reliable stock advisory firm Reliable stock tips provider in stock market SEBI registered best intraday tips provider Share market trading tips online Stock market Stock market news Stock Market tips Stock market trading tips provider Strategy for Wealth Management and Financial planning Top rated Portfolio Management services Top rated SEBI registered stock advisory firms
Archives
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- March 2023
- February 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
Categories
- Best Investment Advisor in India
- Business
- Commodity Market
- Currency
- Equity Market
- FII based calls
- Foreign Markets
- Genuine stock tips provider
- Intraday trading tips
- Intraday trading tips & Strategies
- Investment adviser
- Investments
- IT Industry
- Most accurate stock tips provider
- News
- NSE F&O
- Operator based calls
- Politics
- Portfolio Management Services
- promotions
- SEBI Registered advisory company
- Stock Market
- Uncategorized
Calender
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | |||||
3 | 4 | 5 | 6 | 7 | 8 | 9 |
10 | 11 | 12 | 13 | 14 | 15 | 16 |
17 | 18 | 19 | 20 | 21 | 22 | 23 |
24 | 25 | 26 | 27 | 28 |