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Saurabh Mukherjea on why HDFC Bank is a bigger bet for Marcellus, not TCS
Saurabh Mukherjea believes that as HDFC Bank stabilizes and its numbers improve, institutional appetite will return. He mentions that without merger synergies, HDFC Bank is already a profitable bank with a 1.9% ROA. If the ROA increases to 2%, the bank's ROE could be around 18%. He also notes that HDFC Bank's operational delivery has been solid post-merger. Despite the consensus buy on HDFC Bank, there has been a reduction in institutional exposure, but Mukherjea expects the selling to abate and institutional investors to return.