Goldman Sachs Bullish on HDFC Bank Amid Q4 Numbers By Investing.com

HDFC Bank's Quarterly Performance:

• Showcased a 3% QoQ growth in core Pre-Provision Operating Profit (PPOP) with ROA at 2.6% and 1.9%, aligning with Goldman Sachs' estimations.
• Focused on deposit momentum, loan-deposit ratio, and net interest margins, achieving a 17% increase in deposit market share and enhancing CASA ratio by 140 basis points.

Financial Metrics Improvement:

• HDFC Bank increased its loan-to-deposit ratio by 600 basis points to 104% and LCR by 500 basis points to 115%.
• Marginal improvement in margins by 4 basis points defied anticipated contraction due to an unfavorable asset mix.

Earnings Estimates and Strategic Initiatives:

• Goldman Sachs noted varied EPS estimates but anticipates convergence post-management commentary.
• HDFC Bank plans strategic initiatives like controlling deposit costs and optimizing lending rates for growth and profitability.

Analysts' Coverage and Targets:

• 40 analysts cover HDFC Bank, with targets ranging from INR 1,545 to INR 2,410 per share, averaging at INR 1,885 per share.
• Fair value analysis suggests a value of INR 1,779 per share, indicating a 17.5% upside potential from the current market price.

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