Sharekhan's research report on Housing Development Finance Corporation
With its theme of ‘actionable intelligence’ in its annual report, HDFC has been adapting to newer and faster ways of communicating with stakeholders through digital interface, changing with the landscape to remain competitive and be future-ready. Currently, the company receives 91% of home applications through digital channels. The management believes that India’s housing loan market would double to ~$600 billion in the next five years with estimated mortgage penetration of 13% of GDP which would still be lower as compared to emerging economies. It believes that the optimum path to scale up housing finance is to be housed within a banking structure. The resources pool for lending will be significantly larger and at lower costs. The company is waiting for regulatory approval of proposed amalgamation of HDFC with HDFC Bank. It remains confident that the outcome will be judicious and fair at a systemic level.
HDFC’s stock price has corrected by 29% from the highs of Rs. 3,021. We re-iterate our Buy rating with an unchanged SOTP based PT of Rs. 3,025.
At 11:23 hrs Housing Development Finance Corporation was quoting at Rs 2,175.15, up Rs 16.45, or 0.76 percent.
It has touched an intraday high of Rs 2,179.00 and an intraday low of Rs 2,143.00.
It was trading with volumes of 38,959 shares, compared to its thirty day average of 138,461 shares, a decrease of -71.86 percent.
In the previous trading session, the share closed down 0.76 percent or Rs 16.60 at Rs 2,158.70.
The share touched its 52-week high Rs 3,021.10 and 52-week low Rs 2,026.55 on 15 November, 2021 and 17 June, 2022, respectively.
Currently, it is trading 28 percent below its 52-week high and 7.33 percent above its 52-week low.Market capitalisation stands at Rs 394,651.18 crore.
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