FINANCIALS SECTOR
MORGAN STANLEY ON FINANCIALS : 22.03.2022
• ICICI Bank: Strong PPOP Growth to drive sustained re-rating
• Axis Bank: Expect inflection in core PPoP growth from hereon
• SBI: Preferred pick in SoE banks; Loan growth to drive next leg of re rating Why Bullish? 001
• Financial is the largest overweight in India
• Expect the RBI to start policy normalization in June
• Credit growth to accelerate with a lag vs. economic growth
* Corporate balance sheets are healthier
• NPL formation has slowed, and economic activity is picking up
* Expect large banks' earnings to compound at 20-30% over 3 years
CLSA ON FINANCIALS : 25.02.2022
* Maintain ICICI/SBI/Axis as top picks among large banks
• Like M&M Financial Services among NBFCs
• Revision in Jan-22 loan growth: 5.3% YTD growth now
• Turning asset quality and rate cycle positive
• Growth key monitorable
Credit Suisse cuts FY22 estimate for NBFCs by 10-16% on higher provisions & lower loan growth
* Survey Of Truck Owners Reveals Impending EMI Defaults & Slower Demand
• Cut FY22 Estimate By 10-16% On Higher Provisions & Lower Loan Growth
* Shriram Transport With A Target Of 1,675/Sh Is Our Top Pick
* Cautious On M&M Fin; Have A Neutral Call With Target Of 165/Sh
* Maintain Outperform On Chola With A Traget Of *610/Sh
JPMORGAN ON FINANCIALS : 23.06.2021
* SBI, HDFC Bank and ICICI look best positioned
• FY21 performance benchmarking: large banks did better
* Large bank performance remains better in FY21
* Corporate sector asset quality normalization is bullish for public sector banks
• Risk of higher restructuring by end-Sep remains
• Post F22/23 Street EPS estimates have been revised up