HDFC Share Price Target Forecast 2022, 2023, 2025, 2030

10 DECEMBER 2021

Sharekhan’s price target for Housing Development Finance Corporation ; buy for Rs 3589.

In a research report dated December 9, 2021, Sharekhan Housing Development Finance Corporation advised a BUY rating on the company with a target price of Rs 3589.

With a solid liability franchise, a robust balance sheet, and growth levers, we believe Housing Development Finance is the top player in the industry and is positioned better than all of its peers. Throughout all business cycles, HDFC has consistently outperformed its competition. HDFC is a key benefactor of the shifting sector dynamics due to improved affordability and changing housing demands during the pandemic.

We expect the company’s loan book to grow rapidly in the future, with the personal loan book remaining solid; on the asset quality front, HDFC has been able to keep its GNPA lower than its peers (September GNPA was 1.4 percent of the loan book with the restructured loan at 2 percent ).

Outlook

With a SOTP based PT of Rs. 3,589, we repeat our buy on HFDC. HDFC FY23E trades at 3.9x P/BV on CMP. The stock has dropped 14% from its high and is now trading at Rs 2,656.

Moneycontrol.com is the source for this information.


NOVEMBER 9TH, 2021

HDFC would issue bonds to raise Rs 3,000 crore.

The Housing Development Finance Corporation (HDFC) said on Tuesday that it will issue bonds on a private placement basis to generate Rs 3,000 crore.

On November 11, 2021, subscriptions for Secured Redeemable Non-convertible Debentures (NCDs) with a coupon rate of 7.10 percent per year will open and end on the same day.

The purpose of the issuance is to increase the corporation’s long-term resources. The proceeds of the current issuance will be utilised to finance/refinance HDFC’s home finance business requirements, according to a regulatory filing.

The bond has a AAA rating from CRISIL and ICRA.

HDFC’s stock ended the day on the BSE at Rs 2,940.50, down 1.27 percent from the previous close.

Moneycontrol.com is the source for this information.


NOVEMBER 2, 2021

Is it better to buy, sell, or retain HDFC stock? What should investors do now that the second quarter’s results have been released?

After the business released September quarter results, the share price of Housing Development Finance Corporation (HDFC) gained 1% in early trade on November 2.

The Housing Development Finance Corporation (HDFC) declared a profit of Rs 3,780.5 crore for the quarter ending September 2021, up 31.7 percent year on year.

In the same quarter the previous year, profit was Rs 2,870.1 crore.

Net interest revenue, which is the difference between interest generated and interest expended, increased by 12.7% to Rs 4,108.5 crore from the previous year.

Following the company’s September quarter earnings, the brokerage had the following to say about the stock:

Credit Suisse

After a solid quarter and improving growth, the research company upgraded the stock to a higher rating with a target of Rs 3,200. The company’s real estate business still has a lot of upside potential, and it’s still primarily focused on retail. It boosted EPS by 1-2 percent as a result of the improved growth.

Morgan Stanley

Morgan Stanley has upgraded the stock to an overweight call with a target price of Rs 3,340. Personal loan disbursements and AUM continued to grow QoQ, while non-personal loans also grew. The QoQ of stage 2 and 3 loans decreased, but provision coverage remained consistent. Due to strong supporting values, the research company lowers its projections but raises its objective.

Mcquerie

Asset quality remained extremely solid, with gross nonperforming assets (NPAs) at 2%, the lowest in the sector, according to the brokerage firm, which has maintained an outperform call with a target of Rs 2,960. Credit growth is improving, and non-personal book growth is expected to rise much more.

Jefferies

The research group has upgraded the stock to a buy rating and increased the target price to Rs 3,480.

Taking advantage of demand, the company is experiencing tremendous increase in home loan disbursements. Stage-3 loans have a lower interest rate of little over 2.5 percent, with a bigger buffer provision of 1.3 percent helping to reduce the loan cost.

CLSA

CLSA has been downgraded to outperform with a target price of Rs 3,250, indicating that its value is at fair levels. The firm saw substantial growth, but its margins were better than planned.

It forecasts NII/PPOP growth of 15-16% in FY 2011-24, compared to 8% in FY 2015-20.

Moneycontrol.com is the source for this information.


NOVEMBER 1, 2021

HDFC’s second-quarter profit increased by 32% to Rs 3,780.5 crore.

HDFC announced a 31.7 percent year-on-year increase in earnings of Rs 3,780.5 crore for the quarter ended September 2021, with assets under management (AUM) at a five-quarter high, and improved property quality on November 1. Profitability was aided by more dividend income and decreased expenditures.

In the same quarter the previous year, profit was Rs 2,870.1 crore. Net interest revenue, which is the difference between interest generated and interest expended, increased by 12.7% to Rs 4,108.5 crore from the previous year.

The results were mostly in accordance with analysts’ predictions. According to average expert estimates surveyed by CNBC-TV18, profit for the quarter was predicted at Rs 3,767.7 crore and net interest income at Rs 4,229.1 crore.

“Home loan demand remains high,” HDFC added. Both the inexpensive housing segment and high-end buildings have seen an increase in home loans. The housing sector will benefit from increased sales momentum and new project launches.” In the BSE application.

Individual approvals and disbursements grew by 67 percent and 80 percent, respectively, for the half-year ending September 2021, compared to the same time the previous year, according to the corporation.

Individual disbursements in October 2021 were the most in the non-quarter-ending month, according to HDFC. “Digital channels were used to receive 89% of new loan applications.”

The assets under management (AUM) amounted at Rs 5,97,339 crore in September 2021, up from Rs 5,40,270 crore the previous year, representing a 10.6% year-on-year increase. AUM increased by 4% from one quarter to the next.

AUM YoY growth is at a 5-quarter high, according to CNBC-TV18, while QoQ growth is at a 13-quarter high.

“Personal loans account for 78 percent of AUM as of September 2021.” The personal loan book grew by 16 percent in terms of AUM “According to HDFC.

Personal loan collection capacity topped 98 percent on a cumulative basis during the quarter ending September 2021, according to the company. “Gross non-performing loans as of September 2021 were at Rs 10,341 crore,” according to regulatory standards. This loan accounts for 2% of the whole portfolio.” In the June 2021 quarter, gross nonperforming assets (NPAs) were 2.24 percent.

On a sequential basis, individual gross NPAs fell from 1.37 percent to 1.1 percent, while non-individual gross NPAs fell from 4.87 percent to 4.69 percent.

As of September 2021, HDFC’s provisions were Rs 13,340 crore, with provisions as a percentage of exposure (EAD) in default equaling 2.56 percent.

The Corporation reported an anticipated credit loss of Rs 1,138 crore for the six months ending September 2021, compared to Rs 1,635 crore in the previous year’s equivalent period, and against a projected credit loss of Rs 436 crore in the September 2020 quarter. The amount was Rs. 452 crore.

At 15:18 IST, HDFC’s stock is trading at Rs 2,887.55 on the BSE, up 1.54%.

Moneycontrol.com is the source for this information.


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