Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessMarkets

HDFC gains over 1% after good Q2 show; brokerages maintain positive stance

Brokerages termed the performance to be in line with estimates, but believe that steady asset quality and loan spread bode well for the stock.

November 02, 2018 / 11:07 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Shares of HDFC were higher by over a percent on Friday morning as investors cheered the September quarter results.

Brokerages termed the performance to be in line with estimates, but believe that steady asset quality and loan spread bode well for the stock.

The housing finance company reported a healthy 24.71 percent on year growth in second quarter profit to Rs 2,467 crore, driven by income from stake sale in AMC business.

Profit in the year-ago period stood at Rs 1,978.2 crore.

Housing Development Finance Corporation earned profit of Rs 1,000 crore on sale of stake in HDFC AMC in quarter ended September 2018, against reported income on sale of investments of Rs 63 crore in same period last year.

HDFC AMC had raised Rs 2,800 crore through its IPO in last week of July. Founders HDFC as well as Standard Life Investments offloaded stake through this IPO.

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 2,400

The global research firm said that the profit was slightly better than consensus. Further, it said that the profit was driven by lower net interest income and higher provisions. Overall gross NPL ratio moved lower QoQ to 1.13% from 1.18%, while the loan spread was stable at 2.28 percent.

Brokerage: Jefferies | Rating: Buy | Target: Cut to Rs 2,025 from Rs 2,030

Jefferies has tweaked FY19-21 estimates by 0-4%. It is forecasting AUM CAGR of 18% & BVPS CAGR of 12.8% over FY18-21. Further, the margin was largely stable at 3.5 percent. Asset quality witnessed sequential improvement. Lastly, it said that the one time investment gain from stake sale in the asset management company business led to non-interest income spurting.

Brokerage: Credit Suisse | Rating: Outperform | Target: Cut to Rs 2,150 from Rs 2,350

The brokerage house said that Q2 results were in-line with healthy AUM growth of 17% YoY. The profit aided by sale of 4% stake in HDFC AMC, it added. It also said that the company has been able to raise not just commercial papers but also long tenure funds. It has cut EPS estimate by 3-6% on margin pressure.

At 11:02 hrs Housing Development Finance Corporation was quoting at Rs 1,789.50, up Rs 27.80, or 1.58 percent, on the BSE. It touched an intraday high of Rs 1,799.00 and an intraday low of Rs 1,766.80.

Moneycontrol News
first published: Nov 2, 2018 11:07 am

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347