target price
The current market price (CMP) of HDFC is Rs. 2809. Brokerage firm Geojit has a target price for the stock of Rs. 3355. Therefore, the stock is expected to generate a return of + 30% over a target period of 1 year.
| Stock outlook | |
|---|---|
| Current market price (CMP) | Case 2809 |
| target price | Case 3355 |
| 1 year | 19.00% |
Corporate performance
HDFC’s Net Interest Income (NII) increased 14.1% year over year to Rs. 4,110 crore; NIM improved to 3.6% (+ 40bps YoY). PAT rose 31.7% year over year as the credit spread improved during the quarter. The cost / income ratio was 8.2% compared to 8.4% in the last quarter. In the first half of the year there was a strong recovery in debt collection and disbursement. The company’s loan book was Rs. 507,645 crore (+ 9.6% YoY) as the AUM loan book grew 10.6% YoY to Rs. 579,339 crore as the individual loan book grew 16% YoY.
Comments from Geojit
Geojit said: “The long-term outlook remains positive due to the well-diversified loan portfolio and sufficient liquidity.” The broker added, “We expect margins to remain stable as we don’t expect any major rate changes in the near future. Maintaining these spread levels will be the focus for the company. We remain positive on the stock and reiterate our BUY rating with a revised price target of Rs. 3,355 using the SOTP rating. “
about the company
Housing Development Finance Corporation Limited provides home finance to individuals and businesses in India. HDFC also provides home developer and lease finance.
Disclaimer:
The above stock was selected from Geojit’s brokerage report. Investing in stocks carries the risk of financial loss. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any damage resulting from decisions made based on the article.
