ICICI Direct has given Buy recommendation for HDFC with a target price of Rs. 2840 in its research report issued on May 04, 2022
ICICI Direct’s research report on HDFC
HDFC Ltd is the largest NBFC engaged in the housing finance business. It has demonstrated a consistent performance in terms of both business growth as well as asset quality. Individual loans contribute ~79% of AUM • Stake in subsidiaries in insurance and asset management business aid value.
We retain our BUY rating on the stock. We value HDFC Ltd at ~2x FY24E core ABV and Rs 1452 (post15% discount) for subsidiaries and assign a target price of Rs 2840/share.