Buy HDFC; target of Rs 1156: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research report on Housing Development Finance Corporation “Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977 with the primary objective of meeting a social need of encouraging home ownership by providing long-term finance to households. HDFC Ltd. is a pioneer of housing finance in India with over 34 years of lending experience and has widest range of home loan & deposit products. HDFC has a wide distribution network spans of 366 outlets (which includes 95 offices of HDFC's wholly owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns & cities spread across the country. It also has offices in Dubai, London and Singapore and service associates in Kuwait, Oman, Quater, Abu Dhabi and Saudi Arabia to provide housing loans and property advisory services to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). Over the years, HDFC has emerged as a financial conglomerate with its presence in the entire gamut of financial services including banking, insurance (life and non-life), asset management, real estate venture capital and more recently education loans. HDFC has undertaken several consultancy assignments in various countries across Asia, Africa and East Europe to support and establish their housing finance institutions.” “At the current market price of Rs.1031.80, the stock P/E ratio is at 26.25 x FY15E and 23.69 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.39.30 and Rs.43.55 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 12% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 10.16 x for FY15E and 9.36 x for FY16E. Price to Book Value of the stock is expected to be at 5.04 x and 4.49 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs.1156.00 for Medium to Long term investment,” says Firstcall Research report.  

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