Rajat Rajgarhia, Head-Research, Motilal Oswal Securities, pointed out in an interview to CNBC TV-18 that HDFC Bank is a strong buy now because its present valuations at 14.5 times FY15 earnings is the lowest in the last 11 years for this bank. He emphasized that a 25 percent earning Compound Annual Growth Rate (CAGR) is not just the best in the banking, but also the best in the Nifty basket. He said that as the growth numbers start becoming little better for the economy, this stock would deliver earnings growth in the form of stock returns. He added that if there was re-rating happening in the second half of this year for the market, then HDFC Bank would participate. The base case returns for HDFC Bank is 25 percent and that is a phenomenal return to look into a large cap, he said and added that he was very positive on the stock now.
Now a detailed research report by Motilal Oswal of HDFC Bank is available