INSTITUTIONALEQUITYRESEARCH

HDFCLtd(HDFCIN)
Moderatinggrowth

29July2015

INDIA|BFSI|QuarterlyUpdate
HDFCsQ1FY16PATofRs13.6bn(+1%yoy)wasinlinewithconsensusestimates.Profitability
wasdrivenby16.7%growthinNIItoRs21.2bn.NIIwasdrivenby15%yoygrowthinloan
book(addingtheloansold)and3bpsyoyimprovementinspreadto2.31%.NIMremained
stable at 3.8% of yoy basis. Dividend income was lower as receipt of dividend from HDFC
bankamountingtoRs3.15bn,wasaccountedinQ2comparedtoQ1lastyear.Consequently
thepreprovisionprofitgrowthremainedmoderateat2.2%yoytoRs20bn.

KeyhighlightsforQ1FY16
NII grew by17% YoY,above the loanbook growth of 15% YoY (adding the loan sold).
Excluding sell down, the loan book witnessed a growth of 13.7% yoy with individual
segment growing at 15.2% yoy and non individual segment at 10.5%. Non individual
segmentgrowthremainedmoderateforlastfewquarters.
Spreadsat2.31%wasslightlyhigherby3bpsonayoybasis,howeverremainedflatqoq.
Spreadsonindividual/developerloansstoodat1.97%(1.96%inQ1FY15)/3.06%(2.99%
forQ1FY15).NIMsremainedflatat3.8%onyoybasis.
Advances(addingtheloansold)increasedby15%yoytoRs2312bn;howevernetofsell
downs,theloanbookgrowthwas13.7%yoy.Incrementalloansweretowardstheretail
segmentandconsequentlytheproportionofindividualloanbookincreasedmarginally
to 69% from 68.1% year back. HDFC continued to remain cautious towards the
developerandleaserentalsegment.
On funding side, given the decline in bond price, the NCD/Bond witnessed 22.4% yoy
growth whereas bank loan declined by 33.5% yoy. The proportion of NCD in overall
borrowing has being on rise and now constitutes 57.2% (+480bps yoy) of total
borrowing.Similarlythetermloanfrombanksdeclinedto9.4%(650bpsyoy).
Asset quality remained stable with GNPA (%) at 0.69% (+2bps qoq) as on Q1FY16.
IndividualGNPA(%)was0.54%(0.51%asonQ4FY15),whilenonindividualGNPAwas
1.04% (1.01% in Q4FY15). Provision coverage (excluding standard provision) remained
flatqoq.

Outlookandvaluation
Driven by stiffer competition in the retail home loan segment and slowdown in the
developer segment, we expect HDFC Ltd to witness moderation in loan book growth to
~15% over FY1517E. Going forward, we expect spreads and NIMs to remain flat due to
flexibilityinborrowingmix.Moreover,weremainsanguineaboutHDFCsassetqualityand
ability to deliver stable earnings growth of 15%+ with robust RoA of ~2.7%. At the CMP,
HDFCs core book trades at 5x FY16E Adj BV of Rs168 per share (net of investment in
subsidiaries and associates) considering a value of Rs509 per share for subsidiary and
associates.Giventhelimitedupsidefromcurrentlevels,wemaintainourNeutralratingon
thestockwitharevisedPTofRs1373.

NEUTRAL
CMPRS1312
TARGETRS1373(+5%)

COMPANYDATA
O/SSHARES(MN):
MARKETCAP(RSBN):
MARKETCAP(USDBN):
52WKHI/LO(RS):
LIQUIDITY3M(USDMN):
PARVALUE(RS):

1575
1933
30.65
1400/841
69.3
2

SHAREHOLDINGPATTERN,%
FII/ADR/OCB/NRI:
FI/MF/Banks:
NonProCorpHoldings:
Public&Others:

80.0
8.5
1.6
9.8

PRICEPERFORMANCE,%

1MTH
2.7
2.2

ABS
RELTOBSE

3MTH
8.7
1.1

PRICEVS.SENSEX

190
170
150
130
110
90
70
Jul13

Jul14
HDFC

Jul15
BSESensex

KEYFINANCIALS
Rsmn
PreprovROE(%)
PreprovROA(%)
NetProfit
%growth
EPS(Rs)
AdjBVPS(Rs)
ROE(%)
P/E(x)
AdjP/BV(x)

FY15
29.8
3.8
60,901
11.9
38.7
189.9
20.7
33.9
6.9

FY16
30.4
3.8
69,114
13.5
43.9
214.3
21.0
29.9
6.1

ManishAgarwalla(+912266679962)
PradeepAgrawal(+912266679953)
PareshJain(+912266679948)

Page|1|PHILLIPCAPITALINDIARESEARCH

Source:PhillipCapitalIndiaResearch

Source:PhillipCapitalIndiaResearchEst.

1YR
38.7
18.0

FY17E
30.6
3.8
79,030
14.3
50.2
245.0
21.1
26.1
5.4

HDFCLTD QUARTERLYUPDATE

ResultUpdate
(Rsmn)
INTERESTONLOANS
OTHERINTERESTINCOME

Q1FY16

Q1FY15 yoygrowth

Q4FY15 qoqgrowth

65918

57896

13.9

65410

0.8

3878

3539

9.6

5030

22.9
0.9

TOTALINTERESTINCOME

69796

61435

13.6

70440

INTERESTEXPENSES

48634

43305

12.3

45829

6.1

NETINTERESTINCOME

21162

18130

16.7

24611

14.0

NIM

3.80

3.80

0.0

4.00

0.2

PROFITONSALEOFINVESTMENTS

230

2487.6

2251

89.8

OTHERINCOME

656

3169

79.3

1874

65.0

TOTALINCOME

22049

21307

3.5

28735

23.3

PAYMENTTOEMPLOYEES

934

849

10.0

814

14.7

OTHEREXPENSES

961

928

3.6

755

27.2

DEPRECIATION

134

66

303.5

131

2.3

2029

1711

18.6

1701

19.3

20020

19597

2.2

27034

25.9

500

350

42.9

500

0.0

19520

19247

1.4

26534

26.4

5910

5800

1.9

7910

25.3

13610

13447

1.2

18624

26.9

TOTALEXPENDITURE
OPERATINGINCOMEBEFOREPROV
PROVISIONS&CONTINGENCIES
PROFITBEFORETAX
PROVISIONFORTAXES
NETPROFIT

Loanbook(Rsbn)

2312

2034

13.7

2282

1.3

Borrowings(Rsbn)

2106

1879

12.0

2086

0.9

NPAS(%)(Rsbn)

0.69

0.70

0.0

0.67

0.0

CARTIERI

12.40

15.60

3.2

12.30

0.1

CARTIERII

3.40

2.30

1.1

3.70

0.3

Source:Company,PhillipCapitalIndiaResearch

SumofthePartsvaluation
BusinessValuation

Valuation

Subsidiary

Stake

Rsbn

pershare

HDFCParent(housingfinance)

100%

1191

790 4xFY17eCoreAdjBVofRs197

HDFCBank

21.7%

3054

420 Valuingat3.75xFY17EABVPSofRs326

HDFCAMC

60.0%

60

23 3%ofFY17EAUMRs2013bn

GruhFinanceLtd

58.6%

87

30 7xFY17EABVRs10.5bn

HDFCErgoGeneralInsurance

74.0%

21

HDFCStandardLifeInsurance

72.4%

193

HDFCVentureCapital

80.5%

Total

FairValue

Page|2|PHILLIPCAPITALINDIARESEARCH

11 2xFY16EBookvalue
95 15xFY17ENBAP+FY17EEmbeddedValue
2 DiscountedCashflow
1371

GainsinlistedEquityInvestments
Source:Company,PhillipCapitalIndiaResearch

ValuationCriteria

2 valuedat20%discounttocurrentmarketprice
1373

HDFCLTD QUARTERLYUPDATE

Financials

IncomeStatement
Y/EMar,Rsmn
InterestonLoans
InterestonInvestments
Others
TotalInterestEarned
TotalInterestExpended
NetInterestIncome
Totalnoninterestincome
TotalIncome
PersonnelExpenses
OtherExpenses
TotalOpexpenses
NetInc(Loss)beforeprov
Provisionandcontingencies
NetInc(Loss)beforetax
ProvisionforIncomeTax
NetProfit

ValuationRatios
FY14
218,709
3,374
8,223
230,306
160,294
70,012
11,671
81,683
2,792
3,489
6,281
75,402
856
74,402
20,000
54,402

FY15
247,138
3,646
8,918
259,701
179,751
79,951
15,007
94,958
3,285
3,782
7,066
87,891
1,550
86,241
25,340
60,901

FY16e
281,737
4,010
9,364
295,111
203,011
92,100
16,275
108,376
3,777
4,364
8,141
100,235
1,500
98,735
29,620
69,114

FY17e
321,181
4,612
9,832
335,624
230,094
105,530
18,032
123,562
4,344
4,819
9,163
114,400
1,500
112,900
33,870
79,030

FY14

FY15

FY16e

FY17e

77,155

33,647

37,070

40,795

BalanceSheet
Y/EMar,Rsmn
Assets
Cash&BalwithRBI
Loans,Adv&Intaccrued
Investments
FixedAssets(Net)
Otherassets
Deferredtaxassets
TotalAssets

1,965,540 2,277,002 2,633,907 3,023,856

139,127

142,943

155,168

164,372

2,805

6,770

7,447

8,191

63,396

79,156

83,114

87,269

6,299

2,254,321 2,539,517 2,916,705 3,324,484

Liabilities
Sharecapital
ReservesandSurplus
Subordinateddebt
Borrowing

3,121

3,149

3,149

3,149

276,431

306,550

346,197

395,760

34,750

59,750

64,750

69,750

1,804,981 2,026,240 2,344,659 2,659,102

Otherliabilities

94,501

101,929

114,552

151,825

Provisionsandcontingencies

40,540

41,898

43,398

44,898

TotalLiabilities

2,254,324 2,539,517 2,916,705 3,324,484

Source:Company,PhillipCapitalIndiaResearchEstimates

EarningsandValuationRatios
PreprovisionOperatingRoAE(%)
RoAE(%)
PreprovisionOperatingROA(%)
RoAB(%)
EPS(Rs.)
Dividendpershare(Rs.)
BookValue(Rs.)
AdjBV(Rs.)

RevenueAnalysis
InterestincomeonIBA(%)
InterestcostonIBL(%)
NIMonIBA/AWF(%)
CorefeeInc/AWF(%)
Portfoliogains/TotalInc(%)
Op.Exp/TI(%)
Op.Exp/AWF(%)
Employeeexps/Opexps(%)
Tax/Pretaxearnings(%)

AssetQuality
GNPAs/GrAdv(%)
NNPAs/NetAdv(%)

GrowthRatio
Loans(%)
Investments(%)
Deposits(%)
Networth(%)
NetIntIncome(%)
Nonfundbasedincome(%)
NonIntExp(%)
ProfitBeforeTax(%)
Netprofit(%)

Asset/LiabilityProfile
AvgAdv/AvgDep(%)
AvgInvst/AvgDep(%)
IncrAdv/Deposits(%)
AvgCash/AvgDep(%)

CapitalAdequacyRatio:
TierI(%)
InternalCapitalGenerationrate(%)
NNPAstoEquity(%)

Page|3|PHILLIPCAPITALINDIARESEARCH

FY14

FY15

FY16e

FY17e

28.5
20.5
3.6
2.7
34.9
12.4
179.1
173.9

29.8
20.7
3.7
2.6
38.7
15.9
196.7
189.9

11.2
9.2
3.4
0.1
4.9
7.8
0.3
46.5
29.4

0.7
0.5

15.8
2.7
12.3
10.8
14.2
15.4
12.5
15.9
11.9

343.5
7.2
140.8
9.0

19.0
15.1
30.7
3.4

30.4
21.0
3.7
2.6
43.9
16.0
221.8
214.3

30.6
21.1
3.7
2.6
50.2
16.0
253.3
245.0

11.2
9.0
3.5
0.1
4.3
7.8
0.3
46.4
30.0

0.7
0.4

15.7
8.6
15.7
12.8
15.2
11.1
15.2
14.5
13.5

351.4
6.8
112.1
5.1

18.5
14.9
30.5
3.4

11.1
9.0
3.5
0.1
4.0
7.7
0.3
47.4
30.0

11.3
9.4
3.4
0.1
3.1
7.9
0.3
44.5
26.9

0.7
0.4

15.6
2.2
16.2
11.8
13.3
20.6
16.5
13.2
12.2

335.5
6.9
105.4
12.4

17.9
15.4
29.5
2.9

0.7
0.4

14.8
5.9
13.4
14.2
14.6
12.8
12.6
14.3
14.3

368.0
6.6
124.0
5.1
18.3
14.9
29.8
3.3

HDFCLTD QUARTERLYUPDATE

Management
VineetBhatnagar(ManagingDirector)
KinshukBhartiTiwari(HeadInstitutionalEquity)
JigneshShah(HeadEquityDerivatives)

(9122)23002999
(9122)66679946
(9122)66679735

Research
Automobiles
DhawalDoshi
NiteshSharma,CFA

(9122)66679769
(9122)66679965

Economics
AnjaliVerma

(9122)66679969

Infrastructure&ITServices
VibhorSinghal
DeepanKapadia

(9122)66679949
(9122)66679992

Banking,NBFCs
ManishAgarwalla
PradeepAgrawal
PareshJain

(9122)66679962
(9122)66679953
(9122)66679948

Consumer,Media,Telecom
NaveenKulkarni,CFA,FRM
JubilJain
ManojBehera

(9122)66679947
(9122)66679766
(9122)66679973

Metals
DhawalDoshi
YashDoshi

(9122)66679967

Oil&Gas,AgriInputs
GauriAnand

(9122)66679759
(9122)66679986

Pharma
SuryaPatra
MehulSheth

(9122)66679991
(9122)66679964
(9122)66679989
(9122)66679934
(9122)66679974

SalesTrader
DileshDoshi
SuniilPandit
Execution
MayurShah

Cement
VaibhavAgarwal
Engineering,CapitalGoods
AnkurSharma
HrishikeshBhagat

Logistics,Transportation&Midcap
(9122)66679951
VikramSuryavanshi

(9122)66679769
(9122)66679987

(9122)66679943

(9122)66679768
(9122)66679996

(9122)66679952

PortfolioStrategy
AnindyaBhowmik

(9122)66679764

Technicals
SubodhGupta,CMT

(9122)66679762

ProductionManager
GaneshDeorukhkar

(9122)66679966

DatabaseManager
DeepakAgarwal

(9122)66679944

Editor
RoshanSony

9819972726

Sr.ManagerEquitiesSupport
RosieFerns
(9122)66679971

CorporateCommunications

Sales&Distribution
AshvinPatil
ShubhangiAgrawal
KishorBinwal
SidharthAgrawal
BhavinShah

Midap
AmolRao

ZarineDamania

(9122)66679976

(9122)66679747
(9122)66679745
(9122)66679945

ContactInformation(RegionalMemberCompanies)

SINGAPORE
PhillipSecuritiesPteLtd
250NorthBridgeRoad,#0600RafflesCityTower,
Singapore179101
Tel:(65)65336001Fax:(65)65353834
www.phillip.com.sg

MALAYSIA
PhillipCapitalManagementSdnBhd
B36BlockBLevel3,MeganAvenueII,
No.12,JalanYapKwanSeng,50450KualaLumpur
Tel(60)321628841Fax(60)321665099
www.poems.com.my

HONGKONG
PhillipSecurities(HK)Ltd
11/FUnitedCentre95QueenswayHongKong
Tel(852)22776600Fax:(852)28685307
www.phillip.com.hk

JAPAN
PhillipSecuritiesJapan,Ltd
42NihonbashiKabutocho,Chuoku
Tokyo1030026
Tel:(81)336662101Fax:(81)336640141
www.phillip.co.jp

INDONESIA
PTPhillipSecuritiesIndonesia
ANZTowerLevel23B,JlJendSudirmanKav33A,
Jakarta10220,Indonesia
Tel(62)2157900800Fax:(62)2157900809
www.phillip.co.id

CHINA
PhillipFinancialAdvisory(Shanghai)Co.Ltd.
No550YanAnEastRoad,OceanTowerUnit2318
Shanghai200001
Tel(86)2151699200Fax:(86)2163512940
www.phillip.com.cn

THAILAND
PhillipSecurities(Thailand)PublicCo.Ltd.
15thFloor,VorawatBuilding,849SilomRoad,
Silom,Bangrak,Bangkok10500Thailand
Tel(66)222680999Fax:(66)222680921
www.phillip.co.th

FRANCE
King&ShaxsonCapitalLtd.
3rdFloor,35RuedelaBienfaisance
75008ParisFrance
Tel(33)145633100Fax:(33)145636017
www.kingandshaxson.com

UNITEDKINGDOM
King&ShaxsonLtd.
6thFloor,CandlewickHouse,120CannonStreet
London,EC4N6AS
Tel(44)2079295300Fax:(44)2072836835
www.kingandshaxson.com

UNITEDSTATES
PhillipFuturesInc.
141WJacksonBlvdSte3050
TheChicagoBoardofTradeBuilding
Chicago,IL60604USA
Tel(1)3123569000Fax:(1)3123569005

AUSTRALIA
PhillipCapitalAustralia
Level37,530CollinsStreet
Melbourne,Victoria3000,Australia
Tel:(61)396298380Fax:(61)396148309
www.phillipcapital.com.au

SRILANKA
AshaPhillipSecuritiesLimited
Level4,MillenniumHouse,46/58NavamMawatha,
Colombo2,SriLanka
Tel:(94)112429100Fax:(94)112429199
www.ashaphillip.net/home.htm

INDIA
PhillipCapital(India)PrivateLimited
No.1,18thFloor,UrmiEstate,95GanpatraoKadamMarg,LowerParelWest,Mumbai400013
Tel:(9122)23002999Fax:(9122)66679955www.phillipcapital.in

Page|4|PHILLIPCAPITALINDIARESEARCH

HDFCLTD QUARTERLYUPDATE

DisclosuresandDisclaimers

PhillipCapital(India)Pvt.Ltd.hasthreeindependentequityresearchgroups:InstitutionalEquities,InstitutionalEquityDerivatives,andPrivateClientGroup.
ThisreporthasbeenpreparedbyInstitutionalEquitiesGroup.Theviewsandopinionsexpressedinthisdocumentmay,maynotmatch,ormaybecontraryat
timeswiththeviews,estimates,rating,andtargetpriceoftheotherequityresearchgroupsofPhillipCapital(India)Pvt.Ltd.

ThisreportisissuedbyPhillipCapital(India)Pvt.Ltd.,whichisregulatedbytheSEBI.PhillipCapital(India)Pvt.Ltd.isasubsidiaryofPhillip(Mauritius)Pvt.Ltd.
References to "PCIPL" in this report shall mean PhillipCapital (India) Pvt. Ltd unless otherwise stated. This report is prepared and distributed by PCIPL for
information purposes only, and neither the information contained herein, nor any opinion expressed should be construed or deemed to be construed as
solicitationorasofferingadviceforthepurposesofthepurchaseorsaleofanysecurity,investment,orderivatives.Theinformationandopinionscontainedin
thereportwereconsideredbyPCIPLtobevalidwhenpublished.ThereportalsocontainsinformationprovidedtoPCIPLbythirdparties.Thesourceofsuch
informationwillusuallybedisclosedinthereport.WhilstPCIPLhastakenallreasonablestepstoensurethatthisinformationiscorrect,PCIPLdoesnotoffer
anywarrantyastotheaccuracyorcompletenessofsuchinformation.Anypersonplacingrelianceonthereporttoundertaketradingdoessoentirelyathisor
herownriskandPCIPLdoesnotacceptanyliabilityasaresult.SecuritiesandDerivativesmarketsmaybesubjecttorapidandunexpectedpricemovements
andpastperformanceisnotnecessarilyanindicationoffutureperformance.

Thisreportdoesnotregardthespecificinvestmentobjectives,financialsituation,andtheparticularneedsofanyspecificpersonwhomayreceivethisreport.
Investorsmustundertakeindependentanalysiswiththeirownlegal,tax,andfinancialadvisorsandreachtheirownconclusionsregardingtheappropriateness
of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future
prospects may not be realised. Under no circumstances can it be used or considered as an offer to sell or as a solicitation of any offer to buy or sell the
securitiesmentionedwithinit.Theinformationcontainedintheresearchreportsmayhavebeentakenfromtradeandstatisticalservicesandothersources,
whichPCILbelieveisreliable.PhillipCapital(India)Pvt.Ltd.oranyofitsgroup/associate/affiliatecompaniesdonotguaranteethatsuchinformationisaccurate
orcompleteanditshouldnotberelieduponassuch.Anyopinionsexpressedreflectjudgmentsatthisdateandaresubjecttochangewithoutnotice.

Important:These disclosuresanddisclaimers mustbereadinconjunctionwiththeresearchreportofwhichitformspart.Receiptanduseof theresearch

reportissubjecttoallaspectsofthesedisclosuresanddisclaimers.Additionalinformationabouttheissuersandsecuritiesdiscussedinthisresearchreportis
availableonrequest.

Certifications:Theresearchanalyst(s)whopreparedthisresearchreportherebycertifiesthattheviewsexpressedinthisresearchreportaccuratelyreflectthe
researchanalystspersonalviewsaboutallofthesubjectissuersand/orsecurities,thattheanalyst(s)havenoknownconflictofinterestandnopartofthe
researchanalystscompensationwas,is,orwillbe,directlyorindirectly,relatedtothespecificviewsorrecommendationscontainedinthisresearchreport.

AdditionalDisclosuresofInterest:
UnlessspecificallymentionedinPointNo.9below:
1. TheResearchAnalyst(s),PCIL,oritsassociatesorrelativesoftheResearchAnalystdoesnothaveanyfinancialinterestinthecompany(ies)coveredin
thisreport.
2. TheResearchAnalyst,PCILoritsassociatesorrelativesoftheResearchAnalystaffiliatescollectivelydonotholdmorethan1%ofthesecuritiesofthe
company(ies)coveredinthisreportasoftheendofthemonthimmediatelyprecedingthedistributionoftheresearchreport.
3. TheResearchAnalyst,his/herassociate,his/herrelative,andPCIL,donothaveanyothermaterialconflictofinterestatthetimeofpublicationofthis
researchreport.
4. TheResearchAnalyst,PCIL,anditsassociateshavenotreceivedcompensationforinvestmentbankingormerchantbankingorbrokerageservicesorfor
anyotherproductsorservicesfromthecompany(ies)coveredinthisreport,inthepasttwelvemonths.
5. TheResearchAnalyst,PCILoritsassociateshavenotmanagedorcomanagedintheprevioustwelvemonths,aprivateorpublicofferingofsecuritiesfor
thecompany(ies)coveredinthisreport.
6. PCIL or its associates have not received compensation or other benefits from the company(ies) covered in this report or from any third party, in
connectionwiththeresearchreport.
7. TheResearchAnalysthasnotservedasanOfficer,Director,oremployeeofthecompany(ies)coveredintheResearchreport.
8. TheResearchAnalystandPCILhasnotbeenengagedinmarketmakingactivityforthecompany(ies)coveredintheResearchreport.
9. DetailsofPCIL,ResearchAnalystanditsassociatespertainingtothecompaniescoveredintheResearchreport:

Sr.no. Particulars
Yes/No
1
Whether compensation has been received from the company(ies) covered in the Research report in the past 12 months for
No
investmentbankingtransactionbyPCIL
2
WhetherResearchAnalyst,PCILoritsassociatesorrelativesoftheResearchAnalystaffiliatescollectivelyholdmorethan1%ofthe
No
company(ies)coveredintheResearchreport
3
WhethercompensationhasbeenreceivedbyPCILoritsassociatesfromthecompany(ies)coveredintheResearchreport
No
4
PCIL or its affiliates have managed or comanaged in the previous twelve months a private or public offering of securities for the
No
company(ies)coveredintheResearchreport
No
5
ResearchAnalyst, hisassociate,PCILoritsassociateshavereceived compensationforinvestmentbankingormerchantbankingor
brokerage services or for any other products or services from the company(ies) covered in the Research report, in the lasttwelve
months

Independence: PhillipCapital (India) Pvt. Ltd. has not had an investment banking relationship with, and has not received any compensation for investment
banking services from, the subject issuers in the past twelve (12) months, and PhillipCapital (India) Pvt. Ltd does not anticipate receiving or intend to seek
compensationforinvestmentbankingservicesfromthesubjectissuersinthenextthree(3)months.PhillipCapital(India)Pvt.Ltdisnotamarketmakerinthe
securitiesmentionedinthisresearchreport,althoughit,oritsaffiliates/employees,mayhavepositionsin,purchaseorsell,orbemateriallyinterestedinany
ofthesecuritiescoveredinthereport.

Suitability and Risks: This research report is for informational purposes only and is not tailored to the specific investment objectives, financial situation or
particularrequirementsofanyindividualrecipienthereof.Certainsecuritiesmaygiverisetosubstantialrisksandmaynotbesuitableforcertaininvestors.
Eachinvestormustmakeitsowndeterminationastotheappropriatenessofanysecuritiesreferredtointhisresearchreportbaseduponthelegal,taxand

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HDFCLTD QUARTERLYUPDATE

accountingconsiderationsapplicabletosuchinvestoranditsowninvestmentobjectivesorstrategy,itsfinancialsituationanditsinvestingexperience.The
value of any security may be positively or adversely affected by changes in foreign exchange or interest rates, as well as by other financial, economic, or
politicalfactors.Pastperformanceisnotnecessarilyindicativeoffutureperformanceorresults.

Sources,CompletenessandAccuracy:ThematerialhereinisbaseduponinformationobtainedfromsourcesthatPCIPLandtheresearchanalystbelievetobe
reliable,butneitherPCIPLnortheresearchanalystrepresentsorguaranteesthattheinformationcontainedhereinisaccurateorcompleteanditshouldnot
berelieduponassuch.Opinionsexpressedhereinarecurrentopinionsasofthedateappearingonthismaterial,andaresubjecttochangewithoutnotice.
Furthermore,PCIPLisundernoobligationtoupdateorkeeptheinformationcurrent.Withoutlimitinganyoftheforegoing,innoeventshallPCIL,anyofits
affiliates/employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind
includingbutnotlimitedtoanydirectorconsequentiallossordamage,howeverarising,fromtheuseofthisdocument.

Copyright: The copyright in this research report belongs exclusively to PCIPL. All rights are reserved. Any unauthorised use or disclosure is prohibited. No
reprintingorreproduction,inwholeorinpart,ispermittedwithoutthePCIPLspriorconsent,exceptthatarecipientmayreprintitforinternalcirculationonly
andonlyifitisreprintedinitsentirety.

Caution:Riskoflossintrading/investmentcanbesubstantialandevenmorethantheamount/margingivenbyyou.Therecipientshouldcarefullyconsider
whether trading/investment is appropriate for the recipient in light of the recipients experience, objectives, financial resources and other relevant
circumstances.PCIPLandanyofitsemployees,directors,associates,groupentities,oraffiliatesshallnotbeliableforlosses,ifany,incurredbytherecipient.
Therecipientisfurthercautionedthattrading/investmentsinfinancialmarketsaresubjecttomarketrisksandareadvisedtoseektrading/investmentadvice
before investing. There is no guarantee/assurance as to returns or profits or capital protection or appreciation. PCIPL and any of its employees, directors,
associates, group entities, affiliates are not inducing the recipient for trading/investing in the financial market(s). Trading/Investment decision is the sole
responsibilityoftherecipient.

ForU.S.personsonly:ThisresearchreportisaproductofPhillipCapital(India)PvtLtd.,whichistheemployeroftheresearchanalyst(s)whohaspreparedthe
researchreport.Theresearchanalyst(s)preparingtheresearchreportis/areresidentoutsidetheUnitedStates(U.S.)andarenotassociatedpersonsofany
U.S.regulated brokerdealer and therefore the analyst(s) is/are not subject to supervision by a U.S. brokerdealer, and is/are not required to satisfy the
regulatorylicensingrequirementsofFINRAorrequiredtootherwisecomplywithU.S.rulesorregulationsregarding,amongotherthings,communicationswith
asubjectcompany,publicappearances,andtradingsecuritiesheldbyaresearchanalystaccount.

This report is intended for distribution by PhillipCapital (India) Pvt Ltd. only to "Major Institutional Investors" as defined by Rule 15a6(b)(4) of the U.S.
SecuritiesandExchangeAct,1934(theExchangeAct)andinterpretationsthereofbytheU.S.SecuritiesandExchangeCommission(SEC)inrelianceonRule15a
6(a)(2).IftherecipientofthisreportisnotaMajorInstitutionalInvestorasspecifiedabove,thenitshouldnotactuponthisreportandreturnthesametothe
sender.Further,thisreportmaynotbecopied,duplicated,and/ortransmittedonwardtoanyU.S.person,whichisnotaMajorInstitutionalInvestor.

InrelianceontheexemptionfromregistrationprovidedbyRule15a6oftheExchangeActandinterpretationsthereofbytheSECinordertoconductcertain
business with Major Institutional Investors, PhillipCapital (India) Pvt Ltd. has entered into an agreement with a U.S. registered brokerdealer, Marco Polo
SecuritiesInc.("MarcoPolo").TransactionsinsecuritiesdiscussedinthisresearchreportshouldbeeffectedthroughMarcoPolooranotherU.S.registered
brokerdealer

PhillipCapital(India)Pvt.Ltd.
Registeredoffice:No.1,18thFloor,UrmiEstate,95GanpatraoKadamMarg,LowerParelWest,Mumbai400013

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