Wednesday, 3 August 2016

Re: {LONGTERMINVESTORS} HDFC..New thread..



On Thu, Jul 28, 2016 at 9:34 AM, Mihir Desai <desaimihir111@gmail.com> wrote:
 

CS ON HDFC
* Maintain outperform, raise target to `1570 from `1501
* Mgmt expects corporate growth to improve to double digits this year
* Given improving liquidity, softening of bond yields, estimate incremental spreads widening
* Mortgage market pricing continues to remain attractive given lack of rate cuts from banks
* With retail growth momentum robust, HDFC remains well placed to maintain healthy growth
* Cut EPS by 12% for FY17 as likely gains from insurance IPO gets delayed

DB ON HDFC
* Maintain buy, target at `1510
* Growth is gradually improving; see asset quality as stable
* Strong individual AUM growth at +18% YoY, one offs gains used for provision
* Asset quality stable; has sufficient provision to cover contingencies
* Believe there could be some stress in the non-individual loans




--
CA Mihir Desai

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