EUR 120.00 For Business Accounts Only

MOSL: Morning India (18/October/21): 1. HDFC Bank (Earnings/PPOP in line; asset quality robust); 2. HCL Technologies; 3. Avenue Supermarts; 4. Cyient; 5. Mahindra CIE; 6. Fine Organics; 7. Automobiles; 8. EcoSc

Morning India (18/October/21): Morning India (18/October/21): 
Today’s top research ideaHDFC Bank: Earnings/PPOP in line; asset quality robust- HDFCB reported an inline quarter with NII/PPoP growth of 12%/14% YoY and PAT growth of 18% YoY to INR88.3b. Profitability came in strong despite creating an additional contingent provision of INR12b, thus taking the total buffer to ~INR78b (~0.65% of loans).- The bank witnessed a healthy pickup in business momentum as deposits/loans were up 4.5% QoQ each. Retail segment grew ~13% YoY while Commercial and Rural Banking grew robustly at 27.6% YoY. CASA deposits grew 29% YoY and the ratio now stands at 46.8% (+130bp QoQ).- On the asset quality front, GNPA/NNPA ratio improved by 12bp/8bp QoQ to 1.35%/0.4%, with slippages moderating to INR53b (1.8% of loans). On the other hand, the restructured book increased to 1.5% of loans (v/s 0.8% in 1QFY22), however higher provision coverage, along with a contingent provision buffer, provides comfort on asset quality.- Pick up in loan growth particularly retail would aid NII and margins which would drive profitability. Our estimates remain unchanged at 20% PAT CAGR over FY21-24E, with a RoA/RoE at 2.1%/18.3% in FY24E. Maintain Buy with a TP of INR2,000 (3.6x Sep'23E ABV).
Piping hot newsIndia's trade deficit widens to record $22.6 bn in September; exports rise 23%India's merchandise exports in September have risen 22.6% over last year to $33.79 billion on better performance by key sectors like engineering goods and petroleum products, according to the data from ministry of commerce. Imports have increased significantly, by nearly 85% year-on-year to $56.4 billion.