Housing Development Finance Corporation Ltd. share price target

Housing Development Finance Corporation Ltd.'s net profit meets market estimates for the quarter ended June In accordance with the notifications issued by the Ministry of Corporate Affairs and National Housing Bank, the Corporation has adopted the Companies (Indian Accounting Standards)...

Its AUM has grown by 18% for the fifth straight quarter. Growth is similar across individual as well as non-individual segment. Spreads are stable on a sequential as well as YoY basis. NII growth of 17% is in line with our expectations, whereas PAT growth of 54% has significantly beaten our estimates, driven by dividend income of Rs5.9bn from HDFC Bank and lower provisions. Asset quality is stable on a sequential basis. Previous quarters numbers are adjusted and PAT for Q1FY18 is revised downwards by 8% as it moves towards Ind As accounting. Due to recent run-up in stock valuation, we are downgrading the stock to HOLD from ACCUMULATE. We raise our SOTP-based TP to...

In the quarter ended March 2018, the Corporation made a profit of Rs 265 crore from the sale of its wholly owned subsidiaries, HDFC Realty Limited and HDFC Developers Limited. HDFC also created an additional special provision as a charge to the statement of profit and loss of Rs 80...

The key highlight of the result was higher than expected credit traction of 21% YoY to | 359442 crore. This growth has been the highest in last several quarters. It was largely led by individual loan portfolio which increased by 23% YoY to | 251457 crore & accounted for 70% of the total. Non individual book grew by ~17% YoY. Asset quality improved as expected. GNPA ratio stood at 1.11% (GNPA - | 4019 crore). NNPA remained nil. The NPA in the individual book fell by 3 bps QoQ at 0.64% while that...

Visible signs of pick-up in demand for mortgage loan led by improving affordability, attractive incentive from PMAY scheme and introduction of RERA augurs well for sustained growth in loan book for HDFC over the next 3-5 years. Further, the performance of its various financial business subsidiaries/associates has improved substantially over the last few quarters. HDFC has raised fresh equity via QIP and preferential placement in FY18 and incremental capital will help the company to participate in upcoming fund raising of HDFC Bank to retain its stake at 21% and create buffer for leveraging other organic and inorganic growth opportunities in domestic real estate and housing sector. Rolling over our valuation to FY20E, we reiterate...

Spreads are flattish at 2.29% on a sequential basis, spreads on individual as well as non-individual loans remains flattish at 1.92% and 3.1% respectively Stable asset quality with GNPA at 1.15% with flattish movement for individual and...

HDFC Ltd. (HDFC) reported a 22% beat on PAT, helped by a lower tax rate (20% v/s estimate of 30%). Core PBT (up 11% YoY) was in line with estimate. The company made one-off provisions of INR800m, in line with its policy of 30% of one-off gains, to strengthen the balance sheet. The quarter was also marked by healthy AUM growth (+18% YoY/+4%QoQ),...

HDFC has been managing its loan growth in guided territory of 17-18% which we believe will be maintained in coming quarters. Value unlocking of subsidiaries may continue in FY19 as well. We maintain our HOLD rating with PT of Rs2,171 (~4.6x FY20E book) Growth picks up in individual loans momentum in corporate loans maintained: Net loans (ex-sell down) grew by ~21.2% yoy (+5.1% qoq) to Rs3.59 trillion, mainly led by ~23.8% yoy (+7% qoq) increase in the core individual loans (ex- loan sell downs) to Rs2.51 trillion. Meanwhile, corporate loans grew by 17.3% yoy (+5% qoq) to Rs1.08 trillion. The company has sold down loans worth Rs64bn in the past 12 months with no...

Outlook A business for all seasons: As it is said, form is temporary but class is permanent. HDFC Ltd continues to show its class and consistency by maintaining its strong operating metrics over time and over cycles. We expect HDFC's growth trajectory to maintain at the current pace, and by virtue of its best in class credit rating, we find low probability of NIMs...