CLSA upgraded Housing Development Finance Corp (HDFC) to 'buy' from 'outperform', citing positives such as improving affordability and a turning real estate cycle. The brokerage has a target price of Rs 3,050 for the HDFC stock.
ALSO READ: Keki Mistry says no plans to list HDFC Ergo
With an underperformance to the tune of 20-30 percent over the past 12 months, the risk-reward has improved in HDFC, according to CLSA.
CLSA also said the company's growth outlook is improving, though the turning rate cycle is negative for its net interest margin (NIM).
ALSO READ: Sensex, Nifty50 2022 negative
The brokerage has estimated 13 percent growth in the company's net interest income (NII) over FY21-FY24 and 15 percent growth in assets under management (AUM).
Catch latest stock market updates with CNBCTV18.com's blog
ALSO READ: Keki Mistry says no plans to list HDFC Ergo
With an underperformance to the tune of 20-30 percent over the past 12 months, the risk-reward has improved in HDFC, according to CLSA.
HDFC's current valuation appears to be at a low point, with the valuation multiple having bottomed around similar earnings multiples of the past 10 years, according to the brokerage.
CLSA also said the company's growth outlook is improving, though the turning rate cycle is negative for its net interest margin (NIM).
ALSO READ: Sensex, Nifty50 2022 negative
The brokerage has estimated 13 percent growth in the company's net interest income (NII) over FY21-FY24 and 15 percent growth in assets under management (AUM).
Catch latest stock market updates with CNBCTV18.com's blog
First Published: Feb 15, 2022 10:14 AM IST
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