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    Buy HDFC Bank, target price Rs 1490: Edelweiss

    Synopsis

    HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 761501.64 Crore).

    HDFC bank.
    Promoters held 21.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 49.1 per cent, DIIs 18.6 and public and others 11.1 per cent.
    Edelweiss has buy call on HDFC Bank with a target price of Rs 1490. The current market price of HDFC Bank is Rs 1386.15.
    HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 761501.64 Crore).

    Financials
    For the quarter ended 30-09-2020, the company reported a Consolidated Interest Income of Rs 25119.76 Crore, down -3.30 % from last quarter Interest Income of Rs 25978.00 Crore and up 3.23 % from last year same quarter Interest Income of Rs 24333.99 Crore. The bank reported net profit after tax of Rs 7711.37 Crore in latest quarter.
    HDFC bank1

    Investment Rationale
    HDFCB has steadfastly denied the need for a capital raise since the early days of covid-19 and guided for a lower impact of the crisis than most managements, at every stage. Macro trajectory aside, it also remains a comment on the bank’s risk selection and capital productivity consciousness. It continues to put a premium on resilience, which is what HDFCB offers—a strong balance sheet and likely higher residual capital than most. This higher residual capital ensures that its best-in-class franchise can support an adequately large balance sheet after this crisis and fulfil its earnings potential. In terms of gap between reported net worth and ‘true residual equity’, the bank is in the top quartile in our coverage universe. It continues to be among top two sectoral picks.

    Promoter/FII Holdings
    Promoters held 21.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 49.1 per cent, DIIs 18.6 and public and others 11.1 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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