HDFC Bank:Sequential Flat EPS Growth (QOQ); 1110-1135 Zone May Be A Big Hurdle

Trading Idea: HDFC Bank

CMP: 1093

Either sell around 1100-1110 or on rise around 1135-1155;

TGT: 1075*-1040-1025-1005-990*-960-925*-900 (1-3/6M)

TSL> 1185

Note: Consecutive closing (3 days) above 1185 for any reason, HDFC Bank may further rally up to 1210*-1230-1255*-1290 & 1330-1350 in the near to long term (alternative bullish case scenario).

Q4FY16 EPS of HDFC Bank came at 13.20 against consensus of 13.30 (lagged by 0.75%).

For HDFC Bank:

Q4FY16 TTM EPS: 48.20 (FY16/Actual)

Projected FWD EPS: 56.95-67.25-79.45 (FY:17-19/Estimated)

Average PE: 21

As par BG metrics and current market scenario:

Present median valuation of HDFC Bank may be around: 1035 (FY:16/TTM)

Projected fair value might be around: 1130-1225-1330 (FY:17-19/FWD)

 

HDFCBANK	EPS(TTM)	BV(Act)	P/E(AVG)	Low	High	Median	200-DEMA	10-DEMA
Q4FY16/TTM	48.2	245.29	21	1025.42	1046.28	1035.85	1038.82	1081.5
FY17/FWD	56.95	320.9	21	1114.62	1137.29	1125.95	1038.82	1081.5
FY18/FWD	67.25	415.55	21	1211.23	1235.86	1223.54	1038.82	1081.5
FY19/FWD	79.45	540.95	21	1316.52	1343.29	1329.90	1038.82	1081.5

  Analytical Charts: