Buy HDFC; target of Rs 1980: Axis Direct

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Axis Direct's research report on HDFC

HDFC’s Q2 PAT at Rs 21 bn (up 15% YoY) was in line with estimate. AUM growth was strong at 18% YoY driven by ~24% YoY growth in non-individual book (~30% of portfolio) while NIM declined by 10 bps QoQ to 3.9%. However, spreads remained stable at 2.3% and guidance maintained in range of 2.2-2.35%. Value unlocking from life insurance and AMC business is on the way and will be value accretive.

Outlook
Asset quality deteriorated slightly with overall GNPA ratio up 2 bps QoQ at 1.14%. GNPAs in individual loans remained stable at 0.65% but for non-individual portfolio deteriorated further to 2.18%. The management intends to create a provision buffer in Q3 from the profits realized on listing of its life insurance subsidiary. Retain BUY with TP of Rs 1,980.
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.

Read More