Reuters logo
MARKET EYE-Kotak cuts HDFC Bank to "reduce" on valuations
July 16, 2012 / 5:03 AM / 5 years ago

MARKET EYE-Kotak cuts HDFC Bank to "reduce" on valuations

* Kotak Institutional Equities downgrades HDFC Bank to
"reduce" from "add", though it raises the target price to 575
rupees from 565 rupees. HDFC shares flat at 586.85 rupees.
* Kotak says HDFC Bank trading at "expensive" multiples of 3.3
times fiscal 2014 book and 16 times EPS, sees "limited scope for
near-term appreciation."
* The brokerage says "maintaining the current pace of earnings
growth may be difficult over the medium term as loan growth is
about 20 percent." 
* The downgrade comes even after India's third-biggest lender
beat forecasts on Friday with a 30.6 percent rise in April-June
net profit. 

 (abhishek.vishnoi@thomsonreuters.com)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below