Moneycontrol Bureau
Shares of HDFC fell 3 percent after its December quarter earnings fell short of estimates. However, analyts are not perturbed but have slashed target price.
CLSA has a buy rating with a reduced target price of Rs 1440 from Rs 1510 per share, stating weaker topline drives 4 percent cut . It sees 14 percent CAGR over FY 15-18. According to it, stake sale in life and general insurance business can boost reported profit.
HDFC's Q3 standalone profit rose 6.7 percent year-on-year to Rs 1,520.5 crore hit by higher provisions and lower non-core income. Standalone income from operations grew by 7.4 percent to Rs 7,259 crore during the quarter compared to Rs 6,758 crore in corresponding quarter of last fiscal. In same period, net interest income, the difference between interest earned and interest expended, increased 8.2 percent to Rs 2,182.11 crore.
Credit Suisse maintains outperform rating with a reduced earnings per share (EPS) by by 4 percent for Y17/18 on lower net interest margins (NIMS).
Its loan book increased 12.8 percent to Rs 248,097 crore at the end of December quarter 2015 compared to Rs 2,19,939 crore in year-ago period. Growth in total loan book, after adding back loans sold in preceding 12 months was 19 percent.
At 11:06 hrs Housing Development Finance Corporation was quoting at Rs 1,154.50, down Rs 13.20, or 1.13 percent on the BSE.
Posted by Nasrin SultanaFollow @NasrinzStory
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