HDFC Bank market cap to touch $100 bn by 2020: Goldman Sachs

Private sector lender HDFC Bank is likely to cross the $100 billion market capitalisation-mark by fiscal 2019-20, Goldman Sachs said in note. HDFC Bank is currently the country's most-valued bank with market value of Rs 4,22,700 crore (nearly $66 billion). Doubling of profits to $5 billion (Rs 32,000 crore) by 2020-21 will be the key driver in taking HDFC Bank towards the $100 billion market cap milestone, the brokerage said. Goldman Sachs expects HDFC Bank's earnings to grow at a compounded annual growth rate of 21 per cent in the next three financial years to 2019-20. It says the bank's latest earnings defied investor concern on growth and profitability. Future & Option Trading Tips

"HDFC Bank leverages the market share shift from state-owned banks; the retail under-penetration using its large distribution network, highest efficiency among retail peers, and low cost of funds; and a shift of financial savings from deposits to other products. Under our bull case, we see potential for market cap rising to around $137 billion, assuming valuations re-rate closer to one standard deviation above median on potentially higher growth and best-in-class profitability," Goldman Sachs said in a note.  Financial Astrology Tips