Housing Development Finance Corporation Ltd. share price target

Issue Open: November 07 - November 09, 2017 Issue Open: November 07 - November 09, 2017, Price Band: Rs. 275 - 290, Issue Size: 299,827,818 Equity Shares (including Reservation for HDFC Life, Employees, HDFC Employee and HDFC Shareholders of 2,144,520 eq sh + 805,000 eq sh + 29,982,781 eq sh), Offer Size: Rs.8245.26 crs - 8695.0 crs

HDFC Banks Q2FY18 PAT at Rs 41.5 bn was marginally ahead of our estimate, backed by strong NII growth and well managed operating expenses.

Housing Development Finance Corporation Ltd.'s quarterly profit met market estimates on a strong loan growth. HDFC registered an 8% rise in standalone Interest income to Rs 8685.12 crore in the quarter ended September 2017. A 5% rise in interest expenses to Rs 5534.05 crore saw net interest income (NII) grow 12% to Rs 3151.07 crore....

Visible sign of pick-up in demand for mortgage loan led by improving affordability, attractive incentive from PMAY scheme and introduction of RERA augur well for sustained growth in loan book for HDFC over next 3-5 years. Looking ahead, we expect further improvement in HDFC's operating performance on the back of healthy growth in loan book and NII. Further, the performance of its various financial business subsidiaries/associates has improved substantially over the last few quarters. We reiterate our BUY recommendation on the stock...

HDFC's PAT grew by 15% YoY, 4% higher than street estimates. Healthy loan growth as well as AUM growth of 18%, if one adds back loans sold over last year, then the adjusted loan growth is 23% Higher AUM growth driven by non-individual loan growth of 24%, whereas growth in individual segment was relatively modest at 16% Spreads are flattish at 2.29% on a YoY basis, spreads on individual as well as nonindividual loans remains flattish at 1.92% and 3.07% respectively. Stable asset quality with GNPA increased by 2bps sequentially to 1.14% attributable...

ICICI Securities Ltd | Retail Equity Research HDFC Ltd's overall performance was healthy ranging from loan growth, asset quality to margins Standalone PAT was at | 2101 crore vs. estimate of | 1818 crore. The YoY traction in PAT is healthy at 15% YoY. It came in higher largely owing to better dividend income than factored in by us GNPA ratio increased marginally by 2 bps QoQ to 1.14% (GNPA | 3701 crore) vs. ~33 bps QoQ rise seen in Q1. NNPA remained nil The NPA in individual loans was steady QoQ at 0.65% while that of...

ff Gross NPA in non-individual segment increased substantially in 1QFY18 as the company recognised loan worth Rs9.1bn to one of the accounts referred to NCLT/IBC by the RBI. The Company has adequately provided for on same and does not foresee any further hit in profitability from the aforementioned account. ff Individual disbursement growth trajectory began normalizing in 1QFY18 after sharp decline in 2HFY17 due to demonetisation, which the Management expects to improve further in FY18. ff Non-individual loan contributed 36.1% to incremental growth in HDFC's loan book in 1QFY18 compared to 28.7% in 4QFY17 and 12% in 1QFY17....

GNPA ratio increased by ~33 bps QoQ at 1.12%, (GNPA - | 3513 crore,) while NNPA remained nil. Such increase in NPA is the highest in last several quarters. This was on account of an exposure of | 909 crore as Q1FY18. As at Q4FY17, though the account was not NPA, HDFC had made adequate provisioning against this exposure. Thus, no further provisioning was required on this exposure in Q1FY18. Net interest income increased by 17.6% YoY to | 2488 crore. Margins were at 4% while spread was at 2.29%. Advances grew...

ICICI Securities Ltd | Retail Equity Research HDFC Warrant 5th Oct 2018(HDFWA1)| 270 Large ticket and for high risk appetite HDFC Ltd had issued warrants at |14 each in October 2015 for 36 months expiring on 5th October 2018 and is listed on NSE. HDFC issued ~3.65 warrants convertible to 1 equity share each of HDFC Ltd at a conversion price of |1475 per share. It allows the Warrant holder to subscribe for 1 Equity Share for each Warrant held at the Warrant Exercise Price at any...