Morgan Stanley view on HDFC Bank,
raises EPS estimates by 5% for F21 and 4% for F22 and view risk as to the upside. Our higher earnings estimates, coupled with
rolling our valuation forward by three months, drives our PT increase to Rs1425. As discussed in our 24 Mar 2020 report, we see strong earnings outlook over the medium term due to expansion into interior India (which should help drive market share gains amid muted macro) and improved profitability (lower tax rate, reduced risk weights and high pricing power).
