EUR 120.00 For Business Accounts Only

MOSL: Morning India (18/July/22): 1. HDFC Bank (Earnings in line; treasury losses weigh on PPOP growth); 2. ICICI PRU; 3. Jindal Steel & Power; 4. L&T Technology; 5. Angel One; 6. Federal Bank

Morning India (18/July/22): 

Today’s top research idea
HDFC Bank: Earnings in line; treasury losses weigh on PPOP growth
-    HDFCB reported a mixed 1QFY23, with an in line NII/PAT (up 15%/19% YoY), supported by lower provisions. However, PPOP growth fell sharply to 1.5% YoY, impacted by a treasury loss of INR13.1b. Core PPOP though grew healthy ~15% YoY.
-    Business growth remains modest led by healthy traction in Retail and Commercial and Rural Banking while Corporate book saw flattish growth.
-    Asset quality ratios deteriorated led by higher slippages (due to seasonal Agri NPAs), however, restructured book saw a sequential decline to ~76bp of loans (v/s 1.14% in 4QFY22).
-    Healthy PCR of ~73% and a contingent provision buffer (69bp of loans) provides comfort on asset quality.
-    We estimate ~20% PAT CAGR over FY22-24, with RoA/RoE at 2%/17.5% in FY24. HDFCB remains one of our preferred picks and we maintain Buy rating with a TP of INR1,800 per share.

Piping hot news
Indian car buyers are lapping up SUVs, high-tech features like never before
India's romance with SUVs is intensifying ever so fast and automakers are fuelling the affair even further, having launched 36 such models in the last five years. Such is the craze for SUVs at present that waiting periods for some of the most popular models are stretching to over two years, and fresh orders are still flowing in. Car buyers are now willing to spend more on their personal mode of travel and are preferring top-end variants which come loaded with features like sunroof and connected technologies.