Net Sales & PAT of the company are expected to grow at a CAGR of 9% and 19% over 2016 to 2019E, respectively.Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.
Led by strong growth in fee-based income, healthy growth in loan book and best-in-class NIMs (4.3%), HDFC Bank continued to deliver a healthy performance on business growth and operating front in 4QFY18.
KNRC has been able to ramp up order inflows by winning four HAM projects with anEPC business opportunity of INR31b, leading to order backlog of INR59b and providingrevenue visibility of 3.3x its TTM revenue.
The bank reported a healthy and stable performance across the parameters: Loan growth was healthy at 4.3%/18.7% QoQ/YoY led by retail, NIMs were sequentially stable at 4.3%, asset quality was stable, and cost/Income ratio inched down further.
NRB remains a key beneficiary of the strong volume growth witnessed in the automobile segment across sectors with OEMs accounting for ~65% of revenues. Exports are also growing at a robust pace led by a recovery in the North-American and European truck/PV markets (~20% of revenue).