HDFC Bank - Q1FY2014 Result Preview - Angel Broking

HDFC Bank is expected to announce healthy set of results for 1QFY2014. The NII is expected to increase by 25.1% yoy to Rs. 4,360cr, while non-interest income is expected to come in at Rs. 1,885cr, thus achieving a healthy growth of 23.2% yoy. Despite healthy growth of 24.6% yoy in operating Income, Operating profit is expected to grow by just 22.0% yoy, due to a strong growth of 27.3% yoy in operating expenses. Provisioning is expected to be Rs. 455cr compared to Rs. 487cr in 1QFY2013. Consequently the PAT is expected to increase by 30.1% yoy to Rs. 1,845cr.

The stock is currently trading at a valuation of 3.8x P/ABV FY2014E and 3.2x P/ABV FY2015E. Hence, we retain Accumulate rating on the stock.

Source : Equity Bulls

Keywords