Buy Housing Development Finance Corporation; target of Rs 3100: Sharekhan
Sharekhan is bullish on Housing Development Finance Corporation has recommended buy rating on the stock with a target price of Rs 3100 in its research report dated February 02, 2021.
February 09, 2021 / 10:31 PM IST
Sharekhan's research report on Housing Development Finance Corporation
Q3FY2021 results were strong as operational numbers beat expectations; asset quality improved sequentially and growth traction improved. Overall collection efficiency for individual loans stood at 97.6 in December (from 96.3% in September) which is encouraging. Asset quality improved with reported NPA ratio declining, proforma NPA well-contained, company is better capitalised (Tier-I at 19.9%) which demonstrates balance sheet strength.
Stock trades at reasonable valuations of 4.8x / 4.4x its FY2022E / FY2023E ABV; we maintain a Buy with a revised SOTP based price target (PT) of Rs. 3,100.
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