HDFC share price gains after Morgan Stanley remains overweight, ups target to Rs 2,900

Last Updated : Nov 27, 2019 10:32 AM IST | Source: Moneycontrol.com Morgan Stanley forecasts FY20-25 EPS CAGR of 22 percent for HDFC's core lending business and expects core RoE to improve to 15.5 percent in FY22 and 18.5 percent in FY25 from 13 percent in FY20


Shares of Housing Development & Finance Corporation (HDFC) gained over a percent in the morning trade on November 27 after Morgan Stanley maintained its overweight call and raised its target price to Rs 2,900 from Rs 2,600 per share.The research firm is of the view that return on equity (RoE) and EPS growth is poised to stage a multi-year recovery, supported by structurally stronger positioning among non-bank lenders. It has forecasted FY20-25 EPS CAGR of 22 percent for HDFC's core lending business and expects core RoE to improve to 15.5 percent in FY22 and 18.5 percent in FY25 from 13 percent in FY20.HDFC's valuation looks attractive while a pick-up in loan growth over the next 12 months can be seen, Morgan Stanley said.At 10:30 hours, the counter was quoting at Rs 2,331.10, up Rs 27.25, or 1.25 percent on the BSE. It has touched an intraday high of Rs 2,352.80 and an intraday low of Rs 2,313.20.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app. First Published on Nov 27, 2019 10:32 am




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