HDFC Bank (HDB), mcap=$103bn, price $55.65 vs $52.00

– Indian bank with 20% EPS CAGR since 2012 and similarly high growth in loan book and deposits, far ahead of the Indian banking industry credit growth.
– 11% market share.
– Merger with the parent is expected to generate additional synergies.

Valuation: HDB trades at 2.5xBV (all-time low) with historical ROEs of 16%-20%.

Exp. gain: 60% to $84 per ADR using 3.8xP/BV multiple

Full HDB write-up (free guest account required):

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