Hold HDFC, target of Rs 2517: Sharekhan

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Hold HDFC, target of Rs 2517: Sharekhan

Posted on: June 11th, 2009 and is filed under Brokerage Recommendations.

Sharekhan has recommended a hold rating on Housing Development Finance Corporation (HDFC) with a price target of Rs 2517 in its June 10, 2009 report.

“HDFC has received an in-principle nod from its Board of Directors for a combined offering of secured redeemable non-convertible debentures (NCDs) along with detachable warrants. The issue size is pegged at Rs 4,000 crore. The NCDs together with the warrants will be issued on a qualified institutional placement basis.”

“At the current market price of Rs 2,350, the stock trades at 20.8x its FY2011E earnings per share (EPS) and 4.9x its FY2011E adjusted book value (ABV). As we await further clarity over the terms of the issue and the price at which the warrants would be issued, we keep our earnings estimates unchanged. Consequently, we maintain our ‘Hold’ recommendation on the stock with a price target of Rs 2,517,” says Sharekhan’s research report
source: Moneycontrol

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