Housing Development Finance Corporation Ltd. share price target

Asset under moratorium (by value) was at | 7977 crore as on September 2020 (~1.48% of AUM). Asset quality improved with GNPA ratio down ~6 bps QoQ to 1.81% (GNPA - | 8511 crore vs ~| 8631 crore QoQ). GNPA in the non-individual portfolio deteriorated to 4.19% vs. 4.1% in June 2020. Individual portfolio GNPA came in a tad lower by ~8 bps QoQ to 0.84%. Excluding asset classification norms, overall GNPA ratio would be 1.83% with individual/corporate non-performing loans at 0.88% and 4.19%, respectively. As of September 2020, collections efficiency for individual loan...

Q2 FY2021 results were strong, with operational results beating expectations; asset quality improved sequentially and margins too rose. Overall collection efficiency for individual loans stood at 96.3% in September (first month after RBI moratorium ended) which is encouraging Asset quality improved with overall NPA ratio falling 6 bps q-o-q to 1.81%; company is better capitalised (Tier-I at 19.5%; up from 16.2% in Q1 FY2021) which adds to balance sheet strength. HDFC is currently available at reasonable valuations of 3.7x / 3.4x its FY2022E...

HDFC Q1 net profit falls 5% to Rs 3,052 crore, beats Street estimates HDFC has recorded 5% decline in the net profit to Rs 3051.52 crore in the quarter ended June 2020 (Q1FY2021), mainly driven bydecline profit on sale of investment and surge in provisions....

With improved affordability in last 2.5 decades, enhanced fiscal initiatives and credit linked subsidy scheme from government, we expect demand to pick up and hence reiterate our BUY rating on the stock, with a revised target price of Rs. 2,230, based on SOTP valuation. Skewed NIM due to negative carry on higher liquidity Net interest income increased by 10.2% YoY to Rs. 3,392cr, though NIM dropped to 3.1% in Q1FY21 vs. 3.3% in Q1FY20, impacted due to negative carry on account of significantly higher liquidity of Rs. 181cr. The Company recorded a cost-to-income...

HDFC's PAT declined by 5% YoY; however adjusted for dividend, sale of investments, net gains on assigned loans, provisioning and higher liquidity impact, PBT grew by 22% YoY. Asset quality improved sequentially with stage 3 assets for non-individual portfolio declined by 60bps QoQ. 22% book under moratorium compared with 26% in phase 1; however decline seems to be on lower side. Individual loan segment slowed down to 11% vs 14% while non-individual loan growth improved to 15% vs 6%. HDFC has conservative approach towards higher provisioning as gains from subsidiary investments utilized for contingent provisions. Provisions stood at Rs.122.85bn higher than regulatory requirement (Rs.44.5bn)....

HDFC Limited's results were mixed with better-than-expected operational results (benefitted by stake sale proceeds) and sequentially improved asset quality performance but the pace of loan growth slowed (understandably due to the lockdown) and moratorium book stood at 22.4% for overall loans; (from 26% earlier), the decline was lesser compared to other peers. Net interest income (NII, Calculated) came at Rs. 3,518.8 crore, up 5% y-o-y and came better than expectations, even though assets under management (AUM) growth slowed. PAT came at Rs. 3,052 crore (up 36.7% q-o-q but was down 4.7% y-o-y, as...

However, over the past two to three years, delinquencies have increased in the corporate book due to underlying stress in the Real Estate segment as well as the proactive recognition of some stressed accounts as NPLs. When the company reports windfall gains (from stake sales in subsidiaries), it uses 30% of these gains as incremental provisions. The company follows the policy of allotting one- third of gains as provisions, which has led to net additions of ~INR157b to the Strong internal accruals of INR155b post the dividend payout are in line with our We believe rating agencies comfort level on adequate leverage based on the product mix is likely to reduce across products in this cycle, especially considering the challenges witnessed in the NBFC space over the last two years and the credit events in large entities in the past.

HDFC's profitability declined by 22% YoY due to higher provisions; Asset quality deterioration along with Covid-19 provisions (Rs.5.5bn) resulted increase in provision (up 220% YoY). Non-individual portfolio surprised negatively for asset quality deterioration; however 26% book under moratorium seems to be lower as compared to other NBFCs (also few banks). Individual loan segment slowed down to 14% vs 16% while non-individual growth remains stable at 6%. HDFC has conservative approach towards higher provisioning as gains from subsidiary investments utilized for contingent provisions. Provisions stood at Rs.109.9bn higher than regulatory requirement (Rs.68bn). It should support asset quality...

Profit on sale of investments stood at Rs 16.76 crore in Q4FY2020 compared with Rs 359.02 crore in Q4FY2019, while provision for expected credit loss jumped to Rs 1274.00 crore in Q4FY2020 from Rs 398.00 crore in Q4FY2019. PBT dipped 27% to Rs 2692.44 crore. An...