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Will HDFC Bank double in 5 years?
Current EPS : ₹49
Current PE : 15
RoE : 14%
Assume EPS growing at 10-12%
Projected EPS FY31 : ₹86
Without PE re-rating, considering current PE of 15, it should be trading at ₹1335
Incase, RoE goes back to 17-18%,
PE re-rates to 20, HDFC Bank will reach ₹1720
On conservative approach, HDFC can deliver 12% CAGR at this point.
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