We follow Growth at a reasonable price (GARP) investing method .It refers to a more balanced approach, with this investing method we pick Quality companies that are also trading below their intrinsic fair value.
for our recent findings we see value in HDFC BANK @ current price levels
HDFC BANK IS A CHERRY PICK
GOOD SHARE
SWOT analysis of HDFC BANK'S latest Quarterly result
STRENGTH
HDFC BANK Q1 FY-16 Profit after tax is 26.9bn up 20.7%
Net Interest Income(NII) UP 23% Y-OY on above average loan growth.
Superior NIM(Net interest margin) of 4.3%
Core fee income spurred revenue momentum
CASA(Current account saving account) spurt continued to be on track (up 20%y-o-y)
Gross non-perfoming loans-0.96,Net non-performing loans-0.26 well below risk zone during this qrt.
Healthy outstanding flouting provision (over15bn) and robust coverage ratio of >70% lends comfort.
WEAKNESS
Operating expense continued to surge with 26% y-o-y growth inturn restricting core profitability
OPPORTUNITY
The bank's best -in class liabilities franchise, marginal stress baggage & growth ammunition place it in a sweet spot to capitalize on waning competition & emerging opportunities .
Rural/semi-urban branches &productivity improvement due to digital focus will ensure that HDFC bank maintain- above industry earning growth, which in turn will sustain superior return ratios.
THREAT
_
Since we find strength & opportunity out weight weakness & threat we place HDFC bank in
GOOD SHARE category
GOOD PRICE
According to our valuation method HDFC bank at current price level of 1088 is under-valued for its 3-5 years earning growth
GOOD TIME
We expect a favorable monetary action in next Quarter , we maintaing BUY for HDFC bank @ current level
for our recent findings we see value in HDFC BANK @ current price levels
HDFC BANK IS A CHERRY PICK
GOOD SHARE
SWOT analysis of HDFC BANK'S latest Quarterly result
STRENGTH
HDFC BANK Q1 FY-16 Profit after tax is 26.9bn up 20.7%
Net Interest Income(NII) UP 23% Y-OY on above average loan growth.
Superior NIM(Net interest margin) of 4.3%
Core fee income spurred revenue momentum
CASA(Current account saving account) spurt continued to be on track (up 20%y-o-y)
Gross non-perfoming loans-0.96,Net non-performing loans-0.26 well below risk zone during this qrt.
Healthy outstanding flouting provision (over15bn) and robust coverage ratio of >70% lends comfort.
WEAKNESS
Operating expense continued to surge with 26% y-o-y growth inturn restricting core profitability
OPPORTUNITY
The bank's best -in class liabilities franchise, marginal stress baggage & growth ammunition place it in a sweet spot to capitalize on waning competition & emerging opportunities .
Rural/semi-urban branches &productivity improvement due to digital focus will ensure that HDFC bank maintain- above industry earning growth, which in turn will sustain superior return ratios.
THREAT
_
Since we find strength & opportunity out weight weakness & threat we place HDFC bank in
GOOD SHARE category
GOOD PRICE
According to our valuation method HDFC bank at current price level of 1088 is under-valued for its 3-5 years earning growth
GOOD TIME
We expect a favorable monetary action in next Quarter , we maintaing BUY for HDFC bank @ current level
