“The Housing Development Finance Corporation Ltd. (HDFC) was amongst the first to receive an ‘in principle’ approval from the RBI to set up a bank in the private sector, as part of the RBI’s liberalisation of the Indian Banking Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of “HDFC Bank Ltd with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The bank has a network of 2,544 branches and 8,913 ATMs in 1,399 cities as on March 31, 2012.”
“HDFC Bank has announced the March quarter results which showed consistent all the way. The stand alone net interest income stood at Rs.73880.40 million from Rs 54685.50 million with a rise of 35.10%. The Net Profit for the quarter stood at Rs 14530.80 million from Rs 11147.10 million showing a rise of 30.35%. The total income is stood at Rs 88800.20 million from Rs 67243.10 million with a rise of 32.06%. The EPS of the bank is stood at Rs.6.19 for the quarter ended March 2012.”
“At the current market price of Rs 545, the stock is trading at 20.63 x FY13E and 17.81 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.26.42 and Rs.30.60 respectively. Net Income and PAT of the company are expected to grow at a CAGR of 25% and 22% over 2011 to 2014E respectively. Price to Book Value of the stock is expected to be at 3.54 x and 2.95 x respectively for FY13E and FY14E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 606 for medium to long term investment,” says Firstcall Research report.
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