MOSL: Morning India (24/April/17)-1. HDFC Bank (Stellar performance on all fronts); 2. ACC; 3. Bharat Forge; 4. Ashok Leyland; 5. Fortis Healthcare
​MOrning India (24/April/17): 1. HDFC Bannk (Stellar performance on all fronts); 2. ACC; 3. Bharat Forge; 4. Ashok Leyland; 5. Fortis Healthcare
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Today’s top research idea
HDFC Bank: Stellar performance on all fronts; Buy with a target price of 1,790
- ​HDFCB’s PAT grew 18% YoY to INR39.9b, led by 27% YoY PPoP growth (10% beat). The bank delivered robust loan growth, strong cost control, margin improvement and impeccable asset quality.
- Loans grew 12% QoQ. Incremental growth in the quarter was driven by corporate loans (62% incremental share; 36% of overall loans). In retail loans (+9% QoQ), the main drivers were credit cards and business banking (+10%/13% QoQ). For FY17, HDFCB achieved 25% incremental market share of the system.
- Digitalization is enabling bank to reduce the excess workforce. Headcount declined by ~6k (10k in 2H) QoQ, leading to 8% QoQ decline in employee costs.
- Asset quality remained impeccable, with NSL less than 50bp. However, HDFCB incurred increased provisioning due to NPAs that received RBI dispensation in the prior quarter.
Piping hot news
GST to boost growth by 4.2%, make products cheaper: Fed paper
- ​The goods and services tax (GST) can boost India's GDP growth by up to 4.2 per cent — double the previous estimate -- as lower taxes on manufactured goods will bump up output and make products cheaper, a US Federal Reserve paper said.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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