ICICI Securities has buy call on Housing Development Finance Corporation with a target price of Rs 3550. The current market price of Housing Development Finance Corporation Ltd. is Rs 2890.45. Time period given by analyst is one year when Housing Development Finance Corporation Ltd. price can reach defined target.
Housing Development Finance Corporation Ltd., incorporated in the year 1977, is a Large Cap company (having a market cap of Rs 521994.01 Crore) operating in NBFC sector.
Housing Development Finance Corporation Ltd. key Products/Revenue Segments include Interest, Income From Sale Of Share & Securities, Other Services, Dividend, Fees & Commission Income and Rental Income for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 38603.51 Crore, up 24.54 % from last quarter Total Income of Rs 30997.13 Crore and up 13.24 % from last year same quarter Total Income of Rs 34090.45 Crore. Company reported net profit after tax of Rs 3493.83 Crore in latest quarter.
Investment Rationale
HDFC Ltd’s Q2FY22 credit cost was capped at <40bps, beating earnings expectations. Stress pool moderated a tad with stage-3 assets coming off 10bps QoQ to 2.5% and stage-2 moderated to 6.2% (vs 6.6%). Individual segment stage-3 assets contracted 30bps QoQ to 1.3%, and for non-individual segment stage-3 increased by 40bps to 6.2%. On stress pool (stage-2/3) of 23.2%/3.9% in non-individual/individual segments, HDFC is carrying provisions of 7.83%/0.82%. Individual loan growth momentum gained traction to 16% YoY (up 4% QoQ) suggesting improving market positioning. Non-individual AUM growth is still under pressure, but pipeline suggests build-up going forward. Individual AUM growth of >15% and provisioning buffer of 2.56% of advances improve visibility on growth and credit cost outlook. The brokerage maintains BUY with a revised SoTP-based target price of Rs3,550 (earlier: Rs3,307). Key monitorables: Behaviour of 23% non- individual stress pool, and rising competition in retail segment.
Promoters held 0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 71.95 per cent, DIIs 16.85 per cent.
Housing Development Finance Corporation Ltd., incorporated in the year 1977, is a Large Cap company (having a market cap of Rs 521994.01 Crore) operating in NBFC sector.
Housing Development Finance Corporation Ltd. key Products/Revenue Segments include Interest, Income From Sale Of Share & Securities, Other Services, Dividend, Fees & Commission Income and Rental Income for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 38603.51 Crore, up 24.54 % from last quarter Total Income of Rs 30997.13 Crore and up 13.24 % from last year same quarter Total Income of Rs 34090.45 Crore. Company reported net profit after tax of Rs 3493.83 Crore in latest quarter.
Investment Rationale
HDFC Ltd’s Q2FY22 credit cost was capped at <40bps, beating earnings expectations. Stress pool moderated a tad with stage-3 assets coming off 10bps QoQ to 2.5% and stage-2 moderated to 6.2% (vs 6.6%). Individual segment stage-3 assets contracted 30bps QoQ to 1.3%, and for non-individual segment stage-3 increased by 40bps to 6.2%. On stress pool (stage-2/3) of 23.2%/3.9% in non-individual/individual segments, HDFC is carrying provisions of 7.83%/0.82%. Individual loan growth momentum gained traction to 16% YoY (up 4% QoQ) suggesting improving market positioning. Non-individual AUM growth is still under pressure, but pipeline suggests build-up going forward. Individual AUM growth of >15% and provisioning buffer of 2.56% of advances improve visibility on growth and credit cost outlook. The brokerage maintains BUY with a revised SoTP-based target price of Rs3,550 (earlier: Rs3,307). Key monitorables: Behaviour of 23% non- individual stress pool, and rising competition in retail segment.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 71.95 per cent, DIIs 16.85 per cent.
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