1804.85 -9.35 (-0.52%)
NSEAug 13, 2020 15:31
The 32 reports from 11 analysts offering long term price targets for Housing Development Finance Corporation Ltd. have an average target of 2125.22. The consensus estimate represents an upside of 17.75% from the last price of 1804.85.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-08-04||Housing Development ..||SMC online||1783.75||1783.75 (1.18%)|
HDFC Q1 net profit falls 5% to Rs 3,052 crore, beats Street estimates HDFC has recorded 5% decline in the net profit to Rs 3051.52 crore in the quarter ended June 2020 (Q1FY2021), mainly driven bydecline profit on sale of investment and surge in provisions....
|2020-07-31||Housing Development ..||Nirmal Bang Institutional||1781.95||2101.00||1781.95 (1.29%)||16.41||Buy|
Nirmal Bang Institutional
Strong Balance sheet; growth aided by non-individual HDFC Ltd (HDFC) reported NII of Rs32.1bn, 7% below our estimate. The weak growth in NII (up 4.6% YoY, down 9.7 QoQ) was due to NIM contraction (down 14bps YoY and 17bps QoQ on calc. basis). We note that the loan yield has contracted by ~26bps QoQ to 9.48% against a drop of ~18bps QoQ in cost of funds. Advances (net of ECL) grew by 10.5% YoY and 3.1% QoQ. Overall AUM grew by 11.7% YoY. Total disbursements stood at 71% of last year. In terms of incremental business (on AUM basis), the nonindividual segment contributed 83% while the rest came from the individual segment. Individual loans grew by 10.4% YoY while non-individual loans grew by 15.2% YoY. The retail disbursements were affected during the quarter due to the lockdown. However, successive month-on-month trend has been...
|2020-07-30||Housing Development ..||Sharekhan||1781.10||2113.00||1781.10 (1.33%)||17.07||Buy|
HDFC Limited's results were mixed with better-than-expected operational results (benefitted by stake sale proceeds) and sequentially improved asset quality performance but the pace of loan growth slowed (understandably due to the lockdown) and moratorium book stood at 22.4% for overall loans; (from 26% earlier), the decline was lesser compared to other peers. Net interest income (NII, Calculated) came at Rs. 3,518.8 crore, up 5% y-o-y and came better than expectations, even though assets under management (AUM) growth slowed. PAT came at Rs. 3,052 crore (up 36.7% q-o-q but was down 4.7% y-o-y, as...
|2020-07-01||Housing Development ..||Motilal Oswal||1889.45||2150.00||1889.45 (-4.48%)||19.12||Buy|
However, over the past two to three years, delinquencies have increased in the corporate book due to underlying stress in the Real Estate segment as well as the proactive recognition of some stressed accounts as NPLs. When the company reports windfall gains (from stake sales in subsidiaries), it uses 30% of these gains as incremental provisions. The company follows the policy of allotting one- third of gains as provisions, which has led to net additions of ~INR157b to the Strong internal accruals of INR155b post the dividend payout are in line with our We believe rating agencies comfort level on adequate leverage based on the product mix is likely to reduce across products in this cycle, especially considering the challenges witnessed in the NBFC space over the last two years and the credit events in large entities in the past.
|2020-06-09||Housing Development ..||Geojit BNP Paribas||1792.20||2166.00||1792.20 (0.71%)||20.01||Buy|
|2020-05-27||Housing Development ..||IDBI Capital||1570.40||1725.00||1570.40 (14.93%)||Target met||Accumulate|
HDFC's profitability declined by 22% YoY due to higher provisions; Asset quality deterioration along with Covid-19 provisions (Rs.5.5bn) resulted increase in provision (up 220% YoY). Non-individual portfolio surprised negatively for asset quality deterioration; however 26% book under moratorium seems to be lower as compared to other NBFCs (also few banks). Individual loan segment slowed down to 14% vs 16% while non-individual growth remains stable at 6%. HDFC has conservative approach towards higher provisioning as gains from subsidiary investments utilized for contingent provisions. Provisions stood at Rs.109.9bn higher than regulatory requirement (Rs.68bn). It should support asset quality...
|2020-05-26||Housing Development ..||ICICI Securities Limited||1502.15||1770.00||1502.15 (20.15%)||Target met||Buy|
ICICI Securities Limited
Net interest income increased ~12% YoY to | 3563 crore, attributable to lower interest cost. Reported NIM came in at 3.4% up 10 bps QoQ. Advances (net) growth were at 10.9% YoY to | 450903 crore and 1% QoQ from | 426739 crore on the back of moderation in corporate book. Individual loan portfolio increased ~12.8% YoY to | 325923 crore and accounted for ~76% of the total loan book, growth in corporate book was 6.5% YoY to | 118165 crore (26.2% of book) being cautious for a while now. Growth in individual...
|2020-05-26||Housing Development ..||SMC online||1623.70||1623.70 (11.16%)||Results Update|
Profit on sale of investments stood at Rs 16.76 crore in Q4FY2020 compared with Rs 359.02 crore in Q4FY2019, while provision for expected credit loss jumped to Rs 1274.00 crore in Q4FY2020 from Rs 398.00 crore in Q4FY2019. PBT dipped 27% to Rs 2692.44 crore. An...
|2020-05-26||Housing Development ..||Nirmal Bang Institutional||1570.40||2062.00||1570.40 (14.93%)||14.25||Buy|
Nirmal Bang Institutional
Headline NPAs impacted due to lockdown and prudent recognition HDFC Ltd (HDFC) reported NII of Rs35.6bn, which was 7% above our estimate. Growth in advances was 9.8%. Growth in the last 10-15 days of the quarter was tepid due to the lockdown. We expect FY21 to be a very subdued year in terms of growth. We are currently building in 2% loan growth (in FY21) as we believe disbursements would be low given (1) the lockdown (up to May 31st 2020) and (2) low demand due to the uncertain economic environment. Reported margin for the full year stood at 3.4% compared to 3.3% last year (FY19), an improvement of ~10bps. We note that while yields (calc.) have been rather sticky, coming off just 25bps form the levels seen...
|2020-05-25||Housing Development ..||Prabhudas Lilladhar||1570.40||1992.00||1570.40 (14.93%)||10.37||Accumulate|
half of Mar'20 led to spike in individual NPAs COVID provisioning (Rs5.9bn; total provisions up 220%YoY) and weak other income (down 92%QoQ/38%YoY) dented Q4FY20 earnings for HDFC with reported PAT at Rs22.33bn (declined 73%QoQ/22%YoY). While NII grew 10%QoQ/12%YoY to Rs35.4bn, it failed to save PPoP that de-grew 67%QoQ/3%YoY. Loans at Rs4509bn stood in-line growing 11%YoY/2%QoQ. Pandemic shutdown contributed to asset quality woes (NPA ~2%) as...
|2020-04-13||Housing Development ..||Geojit BNP Paribas||1680.60||596.00||1680.60 (7.39%)||Target met||Buy|
|2020-03-05||Housing Development ..||Nirmal Bang Institutional||2195.05||2703.00||2195.05 (-17.78%)||49.76||Buy|
Nirmal Bang Institutional
Top quality at slight premium; maintain BUY Recent correction in the HDFC Ltd stock offers an opportunity to play one of India's top quality stocks and one of the largest housing finance companies with a balance sheet size of Rs5.3trn (FY20E). At CMP, the stock is trading 12% below its peak. We think that the current valuation is attractive as it does not fully capture the strong balance sheet, the quality of the HDFC group franchise and the reputation in the investor community. In a nutshell, the risk-to-reward ratio is favorable. For a company that can potentially deliver 13-14% RoE over FY21/22E, HDFC Ltd's standalone business is available at a slight premium over Sep'21 BV. Upon extending the...
|2020-02-07||Housing Development ..||Geojit BNP Paribas||2405.65||2550.00||2405.65 (-24.97%)||41.29||Hold|
Geojit BNP Paribas
We maintain our HOLD rating on the stock, with a revised target price of Rs. 2,550, based on SOTP valuation. NIM remains flat sequentially; One-time gain boosts net profit Net interest income increased by 8.6% YoY to Rs. 3,240cr, while NIM remained at 3.3% in Q3FY20 vs. 3.3% in Q2FY20 and 3.4% in Q3FY19. Profit before tax grew to Rs. 9,143cr from Rs. 2,869cr in Q3FY19, driven by Rs. 9,020cr one-time fair value gain from merger of GRUH Finance with Bandhan Bank, partially offset by higher provisions to Rs. 2,995cr from Rs. 116cr for same quarter last year. One-time gain due to...
|2020-01-29||Housing Development ..||Way2Wealth||2415.00||2415.00 (-25.27%)||Hold|
HDFC Ltd. net profit for the December quarter rose nearly four times to `8,372Cr from `2,114Cr a year ago on the back of fair value gain it took into account for the sale of subsidiary Gruh Finance to Bandhan bank. Loan book growth of 14% was driven by Individual loans growing at 16%, while developer credit slowed to 6%, marginally up from 3% QoQ. NIMS remained constant at 3.30% QoQ. However, its asset quality inched...
|2020-01-28||Housing Development ..||Nirmal Bang Institutional||2404.25||2771.00||2404.25 (-24.93%)||53.53||Buy|
Nirmal Bang Institutional
HDFC Limited (HDFC) has reported its 3QFY20 results with the key pointers being: (1) Exceptional profitability boost prudently used towards provisioning (2) Individual growth relatively better; Sector: NBFC exercising caution in non-individual (3) Margin remains intact at 3.3% (4) NPAs inch up. Per se, on the key P&L; items, HDFC posted 7% YoY NII growth at Rs31,548mn, PPOP growth of 307% YoY at CMP: Rs2,396 Rs121,380mn and PAT growth of of 296% YoY at Rs83,725mn. We have revised our estimates for FY20/FY21/FY22 and retained Buy rating on HDFC, revising our target price to Rs2,771 (from Target Price: Rs2,771...
|2020-01-28||Housing Development ..||ICICI Securities Limited||2404.25||2650.00||2404.25 (-24.93%)||46.83||Hold|
ICICI Securities Limited
Given the unfavourable lending environment, advances growth continue to remain slower at 12.4% YoY to | 431600 crore, led by moderation in corporate book. Though the individual loan portfolio increased ~17% YoY to | 318520 crore and accounted for ~72% of the total loan book, growth in corporate book was curtailed during the quarter at 7% YoY to | 115430 crore (26.1% of book). Growth in the individual loan book, after adding back loans sold in the preceding 12 months, remained healthy at 24% YoY. Asset quality was stable during the quarter with GNPA ratio up ~3 bps QoQ...
|2020-01-28||Housing Development ..||IDBI Capital||2431.60||2625.00||2431.60 (-25.78%)||45.44||Accumulate|
HDFC reported strong profitability higher than market estimates with stable loan growth and improvement in margins sequentially. PAT grew 3x YoY (1x QoQ) led by treasury gain on stake sale in Gruh. The Non-Individual book growth improved a bit to 6% vs 4% (Q2FY20), while Individual book grew ~16%. Despite the challenges in its core housing finance business, HDFC is able to garner its individual book and maintain asset quality at decent levels. We expect the same trend to continue and return ratios to improve once normalcy returns within the sector. Hence, we give ACCUMULATE rating on the stock with a SOTP based TP of Rs2,625 valuing parent business at Rs1,409 (3.1x...
|2020-01-28||Housing Development ..||SMC online||2414.00||2414.00 (-25.23%)|
provisioning while making provisions of Rs 2995 crore in Q3FY2020. The company has maintained stable asset quality, margins and spread, while improved loan growth in Q3FY2020. Operating expenses of the company have increased 13% to Rs 373.91 crore against 5% growth in total income to Rs 3494.69 crore, leading to increase in cost-toincome ratio to 11.0% in Q3FY2020 from 10.2% in Q3FY2019....
|2020-01-27||Housing Development ..||Motilal Oswal||2431.60||2875.00||2431.60 (-25.78%)||59.29||Buy|
HDFC reported another quarter of consistent performance with healthy AUM growth of ~14% YoY, stable spreads of ~2.3% and largely flat GS3% of 1.6%. While NII grew 11% YoY, lower assignment income (INR1.7b v/s INR2.6b YoY), higher opex (+14% YoY) and provisions led to flat core PBT. We expect core RoAA of 1.9% and RoE Note that retail lending growth has remained healthy at 16- 18% with stable individual spreads of ~1.9% since the IL&FS; crisis. Over the past four quarters, HDFC has maintained steady retail loan growth of 16-17% YoY while curtailing wholesale disbursements the share of wholesale loans in overall AUM is down 200bp to 24%. We expect the company to largely maintain spreads as the cuts in home loan rates are offset by declining cost of funds and opportunistic non-individual loan growth. HDFC will continue to effectively We keep our earnings estimates largely unchanged and expect the company to report core PBT CAGR of ~10% over FY20-23.
|2020-01-24||Housing Development ..||Nirmal Bang Institutional||2450.75||2450.75 (-26.36%)||Accumulate|
Nirmal Bang Institutional
HDFC Life Insurance Company (HLI) reported 3QFY20 results with the key pointers being (1) Individual APE growth robust at 31% YoY (2) VNB margin at 26.6% best in class (3) Focusing on profitable distribution mix (4) Persistency has improved across cohorts except 25m. Also, see comprehensive conference call takeaways on page 2 for significant incremental colour. Per se, on the key financial items, HLI posted NBP growth of 16% YoY at Rs42,355mn, Surplus growth of 11% YoY at Rs2,460mn and PAT growth of 2% YoY at Rs2,502mn. We have revised our estimates for FY20/FY21/FY22 and have retained an Accumulate rating on HLI with a revised target price of Rs607 (from Rs608 earlier), valuing the stock at 4.2x H1FY22E P/EV. Also, see our recent initiating coverage...