MOSL: Morning India (5/March/18): 1. HDFC Bank; 2. Automobile; 3. Laurus Labs; 4. Rain Industries; 5. Fortis Healthcare
MOrning India (5/March/18): 1. HDFC Bank; 2. Automobile; 3. Laurus Labs; 4. Rain Industries; 5. Fortis Healthcare
Today’s top research idea
HDFC Bank: The juggernaut
- HDFC Bank has consistently grown its market share in loans and deposits across credit cycles, and has emerged as the best-managed bank in India with robust profitability/growth metrics. Increasing granularity of the balance sheet, a focus on fee income growth, an improvement in operating leverage aided by digital initiatives, and controlled credit costs backed by strong underwriting have enabled the bank to outperform most peers.
- We expect the bank to maintain its growth momentum and further gain market share across business segments. This, coupled with steady revenue growth, a continued improvement in operating leverage and moderation in credit cost, will help accelerate earnings growth (24% CAGR over FY18-20E).
- We expect HDFCBK to deliver RoA/RoE of 1.96%/17.4% in FY20E. We maintain our Buy rating with a target price of INR2,400.
Piping hot news
Proxy advisory firm questions exemptions in Rs 369-bn ONGC-HPCL deal
- Proxy advisory firm IiAS has questioned state-owned ONGC seeking exemption from taking shareholders' nod for acquisition of the government's stake in HPCL, saying such leniency with regard to public votes is not warranted. Oil and Natural Gas Corp (ONGC) bought the government's 51.11 per cent stake in Hindustan Petroleum Corp Ltd (HPCL) for Rs 369.16 billion.
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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