Housing Development Finance Corporation Ltd. share price target

The consolidated PAT grew 18%YoY to Rs79.7bn (we do not estimate consol. PAT). Individual loan book (gross of sell downs) grew a robust 23%YoY, though a shade lower than 25%YoY in Q2FY17. Net of sell downs, the growth was 15.6%YoY (unchanged QoQ). Overall spreads expanded 6bps QoQ to 2.34%. This was supported by a faster re-pricing of bank liabilities while lending yields stayed unchanged. Gross NPAs expanded 5bps QoQ to 81bps with a 4bps and 5bps uptick each in individual...

Except the marginally lower tax rate that pushed Q2FY17 net profit 2.2% away from our estimates, HDFC's Q2FY17 earnings were in-line with our estimates. The management has stated the tax rate going forward can be expected to stay at 28.5-29% levels compared to 30.6% in four out of five preceding quarters (Q1FY16-Q1FY17). Given the not-so-meaningful...

that would form largest private life insurance company. We revise our vishal.narnolia@icicisecurities.com SOTP based TP higher to | 1570 (| 1530 earlier) as we assign multiple of 3.4x FY18E ABV for the core business and due to increase in HDFC bank's...

To generate returns by investing in debt and money market instruments and also in equity and equity related instruments to achieve capital appreciation. * Investors should consult their financial advisers if in doubt about...

Background: HDFC, incorporated in 1977, is the largest mortgage financier in India with a balance sheet size of INR 3tn. HDFC has grown consistently, at a measured pace, without compromising on asset quality and is one of the best managed companies in India. The Individual loans share in core business lending is at 73%. Besides mortgage financing, the company has, through its various subsidiaries, successfully ventured into other businesses including Banking (HDFC Bank), Life and Non-life insurance (HDFC Standard Life and HDFC Ergo), Asset Management (HDFC Mutual Fund) and Call center (Intelenet). HDFC has consistently maintained one of the best...

Strong disbursals, stabilising repayments sustaining stronger AUM growth HDFC's overall book on an AUM basis (on balance sheet + assigned loans) grew 16.4%YoY while the individual AUM growth was robust at ~18%YoY. These figures compare with 15.1%YoY and 17.4%YoY respectively in Q4FY16. While the sale through assignment route has been quite strong (outstanding assigned portfolio up 28.8%YoY), the robust 26%YoY growth in disbursals in individual segment has kept the individual loan segment growth (16.1%YoY excluding assigned loans) in an improvement trajectory for a second consecutive quarter. Our current estimate of on-balance sheet loan growth stands at 17% CAGR FY16-FY18E. The individual loan...

ICICI Securities Ltd | Retail Equity Research PAT increased 37.5% YoY to | 1871 crore, largely in line with our estimate. The surge can be attributed to one-time exceptional gain of | 922 crore, from 22.9% stake in the general insurance business NII growth remained on a slower trajectory at 8.1% YoY to | 2116 crore. Margins were flat YoY at 3.8% as expected Net loans grew at 14.9% YoY to | 265731 crore, led by individual loans growing 16% YoY to | 185281 crore forming 69.7% of the...

to nonrecurring pretax gain of Rs 9.2bn on 22.9% stake sale in general insurance subsidiary.ThecapitalgaintaxpaidonthesaleamountedtoRs2bn.AdjustedPATgrew 4%yoytoRs14.2bn(adjustingforcapitalgain,tax&contingentprovision;). 8 Netinterestspread(2.26%)declined5bpsyoyand3bpsqoq,primarilyduetodeclining spreadsinIndividualloans.NIM(at3.8%)wasstableyoy(10bpsqoq).Onacalculated basisNIMforQ1FY17declinedby4bpsto2.13%. 8 GrossNPAratiodeterioratedby6bpsyoyto0.75%,(primarilydueto5bpsincreasein...

HDFC has reported strong growth in pre-provisioning profit in 1QFY17 owing to healthy growth in NII and recognition of income from sale of stake in general insurance arm HDFC ERGO. Its NII grew by 9.3% yoy & -12.3% qoq to Rs24.2bn due to strong growth in loan book and stable NIMs. On-balance-sheet loan book grew by 2.5% qoq & 14.9% yoy due to 3% qoq & 16.1% yoy growth in individual loan segment. Individual loan segment accounted for 88% of incremental loan book in 1QFY17 vs. 66% in 4QFY16 & 82.7% in FY16. Its life insurance arm entered into an agreement to evaluate merger with Max Life Insurance, which would form the largest private life insurance company. As we...

HDFC, incorporated in 1977, is the largest mortgage financier in India with a balance sheet size of INR 2.88tn. HDFC has grown consistently, at a measured pace, without compromising on asset quality and is one of the best managed companies in India. The retail share of the mortgage business is at 69%. Besides mortgage financing, the company has, through its various subsidiaries, successfully ventured into other businesses including Banking (HDFC Bank), Life and Non-life insurance (HDFC Standard Life and HDFC Ergo), Asset Management (HDFC Mutual Fund) and Call center (Intelenet). HDFC has consistently maintained one of the best...