Housing Development Finance Corporation Ltd. share price target

ICICI Securities Ltd | Retail Equity Research PAT for Q4FY16 increased 40.1% YoY to | 2609 crore, largely in line with our estimate of | 2717 crore. The surge in PAT can be attributed...

subsidiary. The capitalgaintaxedpaid onthe saleamounted toRs3bn. Adjusted PAT declinedby1%yoytoRs18.4bn(adjustingforcapitalgain,tax&contingentprovision;). 8 Netinterestspread(2.29%)declined3bpsyoyand1bpsqoq,primarilyduetodeclining...

HDFC's 4QFY16 headline PBT growth of 32% YoY (to INR36.4b - inline) was driven by one off income on stake sale gain of Insurance venture (INR15.2b). This was partially compensated by INR4.5b of contingency provisions. Retail...

HDFC's quarterly profit has surpassed our estimate on account of better-than-expected growth in operating income. Its NII grew by 6.8% yoy and 16.6% qoq to Rs26.3bn owing to robust growth in high-yielding non-individual loan segment. On-balance-sheet loan book grew by 4.5% qoq and 13.6% yoy due to 6.6% qoq and 9.3% yoy growth in nonindividual loan segment. On incremental basis, non-individual loan segment accounted for 34% of incremental loan book in 4QFY16 compared to17% in entire FY16. We believe that relatively strong growth in high-yielding non-individual loan along with decline in CoF will help HDFC to deliver improved operating performance in coming quarters. Hence,...

HDFC is the first specialized housing finance company (HFC) in India and also the largest. Including the bank, it comes second after SBI with a market share of ~16% (on an individual loan...

Over the last few years, HDFC has proven its competitive advantages over the other housing finance companies through healthy business growth, stable spreads, well-managed asset quality and better managed other financial business subsidiaries. As a result, the stock traded at a premium to its peers with best in class return ratios. Further, we expect improved operating performance in coming quarters led by higher NII and monetization of insurance subsidiaries. As a result, we are upgrading the stock to BUY from HOLD with a revised Target Price of Rs1,440 (wherein the standalone entity has been valued at 3.4x FY18E...

NII growth, but provisions were higher led by standard provisioning in nonindividual loans.Consequently,netprofitswereinline. 8 Netinterestspread(2.31%)wasflatyoyanddeclined1bpssequentially.NIM(at3.85%)...

HDFC, incorporated in 1977, is the largest mortgage financier in India with a balance sheet size of INR 2.27tn. HDFC has grown consistently, at a measured pace, without compromising on asset quality and is one of the best managed companies in India. While the retail share of the mortgage business is at 69%, the 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...

9 Net interest spread (at 2.32%) continued to remain robust with marginal yoy improvement.NIM(at3.95%)declinedmarginallyyoyduetoafallinyields;however,it improvedqoqby15bpsandwasbetterthanweexpected....