Housing Development Finance Corporation Ltd. share price target

HDFC is India's largest provider of housing finance, primarily focusing on retail housing. HDFC's distribution network spans over 400 outlets. In...

Asset quality remained largely stable as Gross non-performing asset (NPA) ratio increased marginally by 1 bps QoQ to 1.2% in Q3FY18. While corporate Gross NPA ratio remained elevated at 2.2%, asset quality in individual loans remained healthy with Gross NPA ratio at 0.7%. Net NPA ratio declined to nil (15 bps QoQ) on the back of additional provision created from one-off gain. Given HDFC's conservative lending policy along with 100%+ provision coverage ratio (PCR), we remain relatively comfortable on overall asset quality...

HDFC is not just a play on rising mortgage penetration, but also on increasing financial literacy and financialization of savings in India. Having incubated several subsidiaries over the past two decades, HDFC derives almost 50% of its value from its subsidiaries, up from ~30% in FY13. In addition, there are still some segments, like health insurance, where HDFC is to yet to enter. The core mortgage business is on a stable growth trajectory, despite intensifying competition. The corporate lending business, on the other hand, has witnessed a revival over the past few quarters, after 3-4 years of modest growth.

HDFC sec Q3FY18 Results Review According to Capitaline data, net sales, operating profit and adjusted net profit of companies (excluding financial services and Oil &Gas;) that are in the NSE 500 grew 8.4 per cent, 12.6 per cent and 14 per cent Year-on-Year, respectively, in the December 2017 quarter. As with the Nifty 50, while sales growth in this set is the best witnessed in three quarters, profitability has been the best in four quarters

Q3FY18 PAT at Rs 56.7 bn (up 233% YoY) was higher than our and consensus estimates. Strong earnings growth was on one-time gain of Rs 52.5 bn from sale of stake in HDFC Life; the proceeds were partly used to create additional provision of Rs 15.8 bn.

Business Growth Continues to be Strong; Maintain BUY Led by robust growth in both individual and non-individual segments, HDFC has reported a strong growth in loan disbursement in 3QFY18. Its loan book grew by a healthy 18% YoY led by continued pick-up in individual loan book (+18.6% YoY and +5.9% QoQ) and non-individual loans (+20.8% YoY and +4.8% QoQ) owing to strong pick-up in lease rental discounting and construction financing. Sustained pick-up in high-margin non-individual loan is encouraging, in our view. Reported profit surged by 382.5% YoY and 290.6% QoQ to Rs52.0bn led by: (a) healthy growth in core business; and (b) one-time gain from stake sale in HDFC Life via IPO in Oct'17,...

ICICI Securities Ltd | Retail Equity Research HDFC's results were healthy on asset quality, growth & spreads front In Q3FY18, HDFC Ltd received | 5250 crore from its stake sale in HDFC Life. Out of this, | 1575 crore has been provided as additional special provision. Factoring this exceptional gain, standalone PAT surged to | 5670 crore. PBT came in line at | 6490 crore but lower than expected tax expenses led to a relatively higher bottomline...

Housing Development Finance Corporation (HDFC) quarterly profit rose more than market estimates as the mortgage lender made a one-time gain by selling part of its stake in the initial public offering of its life insurance arm. HDFC registered a 7% rise in standalone Interest income to Rs 8683.36 crore in the quarter ended December 2017. A 5% rise in interest expenses to Rs 5545.69 crore saw net interest income (NII) grow 10% to Rs 3137.67 crore. Other income grew 3% to Rs 11.73 crore, which took total income up 10% to Rs 3149.40 crore. Operating expenses grew 12% to Rs 239.60 crore, after which OP grew 10% to Rs 2909.90...

quality during the quarter remained steady, as GNPA ratio during the quarter stood at 1.14% versus 1.12% QoQ. In the individual segment, GNPA ratio remained flat at 0.65% sequentially; while in the developer segment, it reported a marginal rise of 9BPS to 2.18% QoQ. HDFC carries Rs.3,235 crore of provisions on its balance sheet (as of Q2FY2018) against NHB...

HDFC Life Insurance Company (HDFC Life) is the second largest private insurer based on shareofNewBusinessPremium(NBP)andisthemostprofitablelifeinsurer,basedonValue of New Business (VNB) Margin. Established in 2000 as a joint venture between HDFC and StandardLifeAberdeen,thecompanyhasacomprehensiveproductportfolioof32individual and10groupproducts,includingarangeofprotectionandsavingsproductstoaddressthe insurance needs of diverse customer segments. In terms of distribution strength, it has 66,372 individual agents (which comprise 6.8% of all private agents in the Indian life insurance industry) and has 125 banking tieups including HDFC Bank giving access to the...