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
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.
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.
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