Motilal Oswal's research report on HDFC
HDFC reported strong numbers overall. While there was a 5% miss on core PBT, a QoQ rise in the share of individual AUM was a positive surprise. Individual loans grew 4% QoQ and 16% YoY, driven by 23% disbursement growth in individual loans. This is the second quarter of 20%+ growth in individual lending, which is very commendable.
Outlook
HDFC’s retail loan growth is impressive, despite intense competition and a high base. Over the past four quarters, corporate loan growth has also picked up smartly – this remains a key for overall spreads, considering individual spreads are under pressure. The company continues to improve its expense ratio, which directly impacts RoA and RoE. We largely maintain the estimates. Buy with an SOTP-based TP of INR 2,000.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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!