Tuesday, 28 June 2016

Re: {LONGTERMINVESTORS} HDFC Bank: thread

 Deutsche on HDFC Bank 
* Maintain buy, raise target to `1370 from `1285
* Market share gain and lower cost could drive 20% EPS growth
* Investment in branches, employees is fastest among peer banks
* Slight shift in loan mix to lead to lower NIMs but also lower costs
* Incremental market share growth is 15% and improving constantly
* Expect ~1.9-2% RoA and ~20% RoE in 2 years
* Valuation is rich at 17x FY18E P/E, but growth to remain steady

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