Karvy Stock Broking has rated HDFC Bank as an underperformer with a price target of Rs 903 in its April 15, 2009 research report.
“In 4th QFY09, we expect the bank to record 25% growth (adjusted for eCBoP) in deposits and 29.2% growth in net advances (adjusted for eCBoP) and would report 22.4% (Y/Y) growth in net interest income (NII) to Rs 20.1 billion. In this quarter growth rates in credit and deposits would be better than that of in Q3FY09 and investment book would not expanded as it was done in previous quarter. We expect HDBK’s margin to improve slightly. We expect NPA provisions of Rs 4.3 billion compared to Rs 2.9 billion in Q4FY08; we estimate the bank’s bottomline to grow by 24.3% (Y/Y) to Rs 5.85 billion. At current price the stock quotes at 2.55x FY2010 adjusted book value; we rate the stock as an Underperformer with a price target of Rs 903 at 2.1x adjusted book value FY2010,” says Karvy Stock Broking’s research report.
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