In today’s briefing:
- HDFC Bank: Growth Trajectory Remains Intact Despite Short-Term Headwinds
- NHPC OFS – While the Overhang Remains, Momentum on the Stock Has Been Very Strong
- Morning Views Asia: Tata Steel Thailand
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HDFC Bank: Growth Trajectory Remains Intact Despite Short-Term Headwinds
- HDFC Bank’s (HDFCB) stock was down over -8% yesterday and is down over -3% today. The stock seems to have reacted to low deposit growth (~2% QoQ) in Q3FY24 .
- Post the merger with HDFC Ltd that completed in Jun 2023, HDFCB needs to grow its deposits at a fast pace to support its loan growth.
- We think HDFCB is well placed to do so. It also has an option to raise capital through affordable housing bonds which have good economics, similar to term deposits.
NHPC OFS – While the Overhang Remains, Momentum on the Stock Has Been Very Strong
- The GoI is looking to raise US$199m in trimming a portion of its stake in NHPC (NHPC IN). There is an upsize option to increase the deal size to US$279m.
- Assuming that the deal upsizes, the deal here would be a relatively large one to digest at 11 days of the stock’s ADV.
- The deal appears to be well flagged, with the selldown by the GoI appearing to be part of its divestment drive across PSUs in India.
Morning Views Asia: Tata Steel Thailand
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.