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HDFC share price dips nearly 3% post Q1 results; brokerages maintain 'outperform'

The company's revenue came at Rs 13,017.7 crore in Q1FY21 against Rs 12,990.3 crore in the corresponding quarter last year.

July 31, 2020 / 01:28 PM IST

Housing Development Finance Corporation (HDFC) share price declined nearly 3 percent in the early trade on July 31, a day after the company announced a 4.7 percent year-on-year (YoY) fall in June quarter standalone net profit at Rs 3,051.5 crore.

The company had reported a net profit of Rs 3,203.10 crore in the June quarter of FY20.

The company's revenue came at Rs 13,017.7 crore in Q1FY21 against Rs 12,990.3 crore in the corresponding quarter of the previous year.

Net interest income (NII) for the June quarter came at Rs 3,392 crore, up 10.17 percent YoY against Rs 3,079 crore in Q1FY20. CNBC-TV18 poll expected NII at Rs 3,419.5 crore.

Also Read - HDFC Q1: Outlier in a troubled sector


Here is what brokerages have to say on the stock and the company:

Credit Suisse | Rating: Outperform | Target: Raised to Rs 2,100 from Rs 1,800

Credit Suisse builds in its estimates capital raising worth Rs 8,000 crore by HDFC in FY21 and has cut earnings estimates by 6-7 percent, CNBC-TV18 reported.

CLSA | Rating: Outperform | Target: Rs 2,100

Moratorium of 16.6 percent of individual and 22.4 percent of total loans was a key highlight. The Rs 50,000-crore plus of moratorium in non-individual loans could lead to uncertainty.

CLSA expects loan/NII growth to mean revert to +10-12 percent growth from FY22, while valuation is reasonable at current levels, CNBC-TV18 reported.

Macquarie | Rating: Outperform | Target: Rs 2,095

It was a decent show in a tough quarter. Almost 70 percent of the builder loan book is under moratorium. The challenges to retail loan growth remain because of the lockdown. However, the excess provisions can cushion against future losses, reported CNBC-TV18.

At 0925 hour, Housing Development Finance Corporation was quoting at Rs 1,766.55, down Rs 44.45, or 2.45 percent, on the BSE.

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Moneycontrol News
first published: Jul 31, 2020 10:19 am
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