Sharekhan has given Buy recommendation for HDFC Bank with a target price of Rs. 1800 in its research report issued on Oct 04, 2022
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.