Motilal Oswal`s research report on Housing Development Finance Corporation“HDFC’s 2QFY15 PAT grew 7% YoY (flat QoQ) to INR13.5b (in-line). Marginally better-than-expected spreads performance led to 2% above estimate NII growth. 2QFY15 spreads (calculated on reported numbers) improved 10bp YoY to 2.29%. Trading gains and dividend income were largely in line. Individual AUM growth was healthy at 17.6% YoY (+4% QoQ). However, risk aversion on the corporate side (+11% YoY and +3% QoQ) dragged AUM growth to 14.9% YoY and 4% QoQ to INR2.3t.2QFY15 overall sanctions/disbursements grew 16%/21% YoY whereas individual/corporate grew by 22%/19% YoY. Asset quality remains healthy, with individual GNPA ratio of 69bp (down 10bp YoY) and corporate GNPA percentage of 1.02% (down 17bp YoY).""Near term business growth to be driven by momentum in individual segment. Expected pick-up on corporate side in 2H will provide strong delta on earnings (high fees and spreads). Ability to manage spreads and strong expertise in housing segment will aid HDFC to report healthy AUM and earnings CAGR of 19% and 17% over FY14-16E. Maintain Buy with an SOTP-based target price of INR1,185,” says Motilal Oswal research report.
For all recommendations, 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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
