HDFC - March 2013 Results Preview - Motilal Oswal

- HDFC's loan growth (net of sell-downs) is likely to remain healthy at ~21% YoY. Spreads should largely be stable at ~2.3% levels.

- NII is likely to remain strong at INR20.25b, registering a growth of 16.2% YoY.

- Non-interest income is likely to grow strongly by ~6% YoY and 17% QoQ.

- Asset quality remained healthy over the past several quarters and the trend is likely to continue. In 3QFY13, GNPAs were 0.75% on 90-day overdue basis.

- We model provisions of INR400m, similar to the levels seen in 3QFY13.

- We expect profit to grow at 15% YoY.

- The stock trades at 4.6x FY14E AP/ABV and 3.6x FY15sE AP/ABV (price adjusted for value of other businesses and book value adjusted for investments made in those businesses).

Source : Equity Bulls

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