At the current market price of Rs685, the stock is trading at 15.0x its FY10E earnings and 2.2x its FY10E ABV.
We have tweaked our earning estimates to factor in increased Cash Reserve Ratio (CRR) requirements, lower growth in fee-based income and slowdown in credit growth.
We now expect net profit for FY09E and FY10E to be Rs12.98 billion and Rs16.28 billion, respectively. This will result in an EPS of Rs36.3 and Rs45.6 for FY09E and FY10E, respectively. The adjusted book value for FY09E and FY10E are forecast at Rs270.9 and Rs308.9, respectively.
We maintain BUY rating on the stock with a target price of Rs957 based on P/ABV of 3.1x its FY10E adjusted book value and P/E of 21.0x its FY10E earnings, which provides 40% upside from current levels.