Housing Development Finance Corporation Ltd., incorporated in the year 1977, is a Large Cap company (having a market cap of Rs 450400.33 Crore) operating in NBFC sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 35753.86 Crore, down -8.95 % from last quarter Total Income of Rs 39267.59 Crore and up 114.97 % from last year same quarter Total Income of Rs 16632.00 Crore. Company reported net profit after tax of Rs 3751.37 Crore in latest quarter.
Investment Rationale
4QFY21 was a strong quarter on all fronts. Disbursements have been picking up MoM and have exceeded YoY levels over the past quarter. With declining cost of funds and a reduction in excess liquidity on the balance sheet, margins should be stable despite pressure on retail lending yield. CE trends are encouraging. With provisions >GNPLs, the brokerage believes the company has made more-than-adequate provisions for any potential asset quality slippages in the ensuing quarters. Its core PBT/PAT estimate for FY22/FY23E remains largely unchanged. It expects HDFC to report core RoA/RoE of 2%/13% over FY22–23E. Reiterate Buy, with SOTP-based TP of INR3,275 (FY23 SOTP-based).
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of March 31, 2021, while FIIs held 72.8 per cent, DIIs 16.3 per cent and public and others 10.9 per cent.
