Target-Price-hdfc

 

HDFC Bankis India’s largest private sector bank with 5,314 branches and 13,514 ATMs spread across 2,768 cities and towns. The Bank offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. It also offers financial services. The Bank’s segments include Treasury, Retail banking, Wholesale banking and other banking business.

Stock Details

Market Cap. (Cr.) 694541.81
Face Value 1.00
Equity (Cr.) 547.70
52 Wk. high/low 1305.50/1011.00
BSE Code 500180
NSE Code HDFCBANK
Book Value (Rs) 284.39
Industry Private Bank

 

Share Holding Pattern %

Promoter

21.29
FIIs 49.71
Institutions 17.09
Non Promoter Corp. 1.98
Public & Others

Government

9.78

0.17

Total 100.00

 

Key Highlights:

  • HDFC Bank reported a healthy 26.75 percent year-on-year (YoY) growth in profit for the quarter ended September 2019 with stable asset quality.Net interest income for the quarter grew 15% to Rs 13515.0 crore.
  • Gross non-performing assets were at 1.38% of gross advances at end of September 2019 as against 1.40% end June 2019. Net NPA stood at 0.42 percent compared to 0.43 percent earlier.The net interest margin of the bank is 4.2% in Q2FY2020 which is stable.
  • The business of the bank has increased at accelerated pace of 21% to Rs 1918599 crore ends September 2019 over September 2018. Total deposits surged 23% to Rs 1021615 crore ends September 2019 over September 2018. Total advances also increased at higher pace of 19% to Rs 896984 croreends September 2019.
  • Domestic advances grew by 21% over September 2018. The domestic retail loans grew by 15% and domestic wholesale loans jumped 28%.
  • CASA deposits of the bank increased by 15% with savings account deposits at Rs 264445 crore and current account deposits at Rs 136791 crore. Time deposits were at Rs 620,380 crore, showing an increase of 28% over the previous year. CASA deposits ratio was steady on sequential basis at 39.3% end September 2019. The Bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 133%, well above the regulatory requirement.

Outlook:

HDFC bank operating performance continues to remain strong with best in class asset quality. The bank has improved expense ratio to 38.8% in Q2FY2020 from 39.9% in Q2FY2019, despite branch additions of 489 branches, 496 ATMs, 206 cash machines and 16301 employees in last twelve months. The bank’s strong network helped in sustaining growth in advances and deposits. Thegrowth in deposits was supported by focus on granular accounts while advances grewdespite weak growth in automobile sector. Asset Quality of the Bank is also improved in September 2019 quarter. Thus Investors can accumulate the stock between Rs.1250-Rs.1300for the target price of Rs.1500 with 12 months’ time frame.

Note: We will update detailed Report on our Website soon.


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