Morgan Stanley Report Dated 23-Sep-2018 - India Financial - It's all about Confidence. Highlights as Follows,
For banks with strong liquidity, deposit spreads will improve in an environment of higher rates. Moreover, if NBFC / HFC growth slows, then lending competition in retail loans could diminish, helping increase lending margins. This could help drive up revenues for retail-funded banks. Our top picks in Indian financials are ICICI Bank, HDFC Bank, SBI, and Axis Bank.
HDFC Bank - We derive our price target of Rs 2,450 using our base case value from a sum-of-the-parts model.
Axis Bank - Our price target of Rs 800 is derived using the base case scenario value from a SOTP valuation methodology.
ICICI Bank - Our price target of Rs 460 is our base case scenario value, derived using a sum-of-the-parts valuation methodology.
