Buy Housing Development Finance Corporation; target of Rs 2215: Anand Rathi
Anand Rathi is bullish on Housing Development Finance Corporation has recommended buy rating on the stock with a target price of Rs 2215 in its research report dated June 07, 2020.
June 09, 2020 / 10:27 AM IST
Anand Rathi 's research report on Housing Development Finance Corporation
Housing Development Finance Corporation Limited (HDFC) reported consolidated revenues of Rs.166,000 million in Q4FY20, registering a de-growth of 42.3% on year-over-year (y/y) basis, mainly reflecting loss on investments in life insurance business. Profit after tax (PAT) decreased 8.4% y/y to Rs.41,160 million. On standalone basis, revenues of Rs.119,757 million increased up 3.4% y/y. Net interest income (NII) grew by 17% y/y to Rs.37,800 million in Q4FY20. The company witnessed slowdown in revenue growth as the reported quarter included dividend income of Rs.21 million as against Rs.5,369million in Q4FY19 and profit on sale of investments of Rs.24 million compared to Rs.3,210 million in the previous year quarter. Also, Q4FY20 included fair value changes of Rs.4,276 million mainly due to the fall in the stock markets compared to Rs.1,672 million in Q4FY19.
We have updated our estimates factoring in latest numbers and continue to remain positive on the company and maintain our BUY rating with a revised target price of Rs.2,215 per share.
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