Housing Development Finance Corporation Ltd. share price target

margin was stable at 3.6% in Q3FY2022. The profit before tax increased 8% to Rs 4048 crore in Q3FY2022 compared to Rs 3753 crore in Q3FY2021. The cost to income ratio eased to 9.7% in Q3FY2022 from 11.4% in Q3FY2021, while rose marginally from 9.4% in Q2FY2022. The loan...

Strong revival in collections and disbursement seen in the first half of the year. The outlook over long-term remains positive on the back of well-diversified loan portfolio and adequate liquidity on hand. Hence we remain positive on the stock and reiterate our rating to BUY with revised target price of Rs. 3,355 using SOTP Valuation. Interest spreads remains stable Interest income marginally slipped 2.9% YoY to Rs. 10.683cr as returns on loans reduced to 8.1% (vs. 9.0% at the end of FY21) at the end of Q2FY22. Interest expense...

HDFC's restructured assets increased to 1.4% (vs 0.9% Q1FY22) of AUM which comprises of 63% Individual loans and 37% non-individual loans. Gross stage 3 assets declined to 2.5% vs 2.6% QoQ (vs 2.2% YoY) led by better collection efficiency. The overall collection efficiency ratio for individual loans has remained stable at 98% in Sept'21. PAT grew by 32% YoY (up 26% QoQ) led by higher other income (up 123% YoY). NII grew by 13% YoY led by improvement in margins while PPoP grew by 29% YoY. Disbursements for individual loan segment grew by 44% YoY in Q2FY22; Oct'21 disbursements highest ever in a non-quarter end month. Provisions stood at Rs.133.4bn...

HDFC reported 2QFY22 PAT (in-line) of INR37.8b, up 32% YoY / 26% QoQ. The increase was primarily driven by lower credit costs of 31bps (which stood at INR4.5b, against the expectation of INR6b). NII (in-line) grew 14% YoY to INR41.1b. Reported spreads stood at 2.29% and were stable QoQ. Assignment income was lower than expected and stood at INR1.3b v/s our estimate of INR4.1b. Gross Stage 2 and Stage 3 declined to 8.67% v/s 9.24% a quarter ago....

Profit before tax for Q1FY2022 stood at Rs 3905 crore compared to Rs 3607 crore in the previous year. The profit numbers for Q1FY2022, however, are not directly comparable with that of the previous year for the reasons such as Profit on Sale of Investments at Rs 263 crore in Q1FY2022 compared with Rs 1241 crore in Q1FY2021, dividend Rs 16 crore (Rs 298 crore) and charge for employee stock options Rs 146 crore (Rs 1 crore). Also the effective tax rate has been higher at 23.1% compared with 15.4% in Q1FY2021. In the previous year, the tax on capital gains on sale of equity shares was low on account of grand...

HDFC's core PBT grew 12% YoY to INR32.2b (5% beat). NII (ex-assignment income) at INR41.3b was 2% above our estimate. On the other hand, provisions at INR6.9b were lower than our est. of INR8b. Better-than-expected...

HDFC's gross stage 3 assets increased to 2.6% vs 2.34% QoQ (vs 2.2% YoY) better than its peer (LICHF at 5.93%). Restructured assets stood at 0.9% (vs 0.8% FY21) of AUM which majorly comprises of one large real estate builder group (62% of restructured). The overall collection efficiency ratio for individual loans has improved during the June month to preCOVID levels and stood at 98.3% vs 98% in March'21. PAT declined by 2% YoY (down 6% QoQ) led by higher tax bracket due to tax on capital gains on sale of equity was lower (23% vs 15% YoY). NII grew by 22% YoY led by improvement in margins. PPoP declined by 4.5% YoY due to higher operating expenses (up 39% YoY). Disbursements for individual loan segment grew by 181% YoY in July month; highest ever in a non-quarter month. Provisions...

What should investors do? HDFC Ltd's share price has grown ~80% over the past five years. Market leadership, funding advantage and adequate capital lead us to remain positive on fundamentals....

in Q4FY2021. The company has posted healthy 18% surge in operating profit to Rs 4645.14 crore in Q4FY2021, driven by an improvement in net interest margins. However, the cost to income ratio rose to 9.7% in Q4FY2021 from 8.0% in Q4FY2020. The loan...

HDFC's asset quality remains stable with gross stage 3 assets stood at 2.34% vs 2.28% QoQ (vs 2.28% YoY) better transit over Covid -19 impact. Also, restructured assets stood at 0.8% (lower than 0.9% Q3FY21) of AUM which majorly comprises of one large real estate builder group (0.5% of AUM). PAT grew by 42% YoY (up 9% QoQ) led by lower ECL provisions (down 44% YoY). NII grew by 14% YoY led by improvement in margins. On adjusted basis for FY21, PBT grew by 19% YoY. Collection efficiency for individual loans for March month stood at 98% vs 97.6% for December month. Disbursements for individual loan segment grew by 60% YoY reflects housing demand remains robust. March 2021 witnessed the highest ever...