Sharekhan is is bullish on Housing Development Finance Corporation has recommended buy rating on the stock with a target price of Rs 2113 in its research report dated May 22, 2020.
Sharekhan's research report on Housing Development Finance Corporation
Housing Development Finance Corporation (HDFC) Limited posted stable Q4FY2020 results operationally, with NII and PPOP coming ahead of estimates, but sequential rise in GNPAs was sobering. Asset-quality wise, GNPA increased marginally to 1.99% (from 1.36% in Q3FY2020), as collections were impacted during the lockdown. Management expects NPAs to come down once the situation normalizes. The impact of COVID-19 is likely to be seen across industries and would impact growth and credit cost for NBFCs, including HDFC as well; and we have accordingly adjusted our price multiples considering the dynamic environment.
We maintain our Buy rating on the stock with a revised price target (PT) of Rs. 2,113.
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