Upcoming Webinar :Register now for 'ULIP as an investment during economic recovery' powered by Bajaj Allianz

Buy Housing Development Finance Corporation: Target Of Rs 2400: Sharekhan

Sharekhan is bullish on Housing Development Finance Corporation recommended buy rating on the stock with a target price of Rs 2400 in its research report dated November 02, 2020.

Nov 5, 2020 / 05:06 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research repor on Housing Development Finance Corporation


Q2 FY2021 results were strong, with operational results beating expectations; asset quality improved sequentially and margins too rose. Overall collection efficiency for individual loans stood at 96.3% in September (first month after RBI moratorium ended) which is encouraging. Asset quality improved with overall NPA ratio falling 6 bps q-o-q to 1.81%; company is better capitalised (Tier-I at 19.5%; up from 16.2% in Q1 FY2021) which adds to balance sheet strength.



Outlook


HDFC is currently available at reasonable valuations of 3.7x / 3.4x its FY2022E / FY2023E ABV; We maintain our Buy rating on the stock with a revised SOTP-based price target (PT) of Rs. 2,400.


For all recommendations report, 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.

Broker Research
first published: Nov 5, 2020 05:06 pm

stay updated

Get Daily News on your Browser
Sections