February 01, 2017 / 11:06 IST
ICICI Direct's research report on HDFC HDFC Ltd is the first specialised housing finance company (HFC) and also the largest. Including banks, it is second after SBI with a market share of 16% (individual loan). Its total outstanding loan book is Rs 286876 crore as on Q3FY17 of which individual loans account for 70% while the corporate proportion has declined to 28% from 36% in FY12. HDFC has witnessed healthy traction of 18% CAGR in the past four years compared to industry CAGR of 16% mainly driven by the individual loan segment.
OutlookIts life insurance arm entered into an agreement to consider a merger with Max Life Insurance that would form the largest private life insurance company. We maintain our SOTP based target price at Rs 1570/share, as we assign multiple of 3.4x FY18E ABV for the core business and factoring HDFC bank’s target value. We maintain our BUY recommendation.
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