HDFC Ltd - Q2FY21 Result Update - Angel Broking

Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

HDFC Ltd reported a good set of numbers for Q2FY21, despite Covid related disruption. AUM grew 10% & 1.6% YoY / QoQ , NII grew at 20% / 7% YoY / QoQ which is higher than AUM growth. NIM improved sequentially by 14bps to 2.76% owing to the lower cost of funds and Money raised through QIP. Core PBT was up 27% YoY on the back of a strong 20% YoY growth in NII and a marginal 3% YoY decline in expenses.

PAT declined 28% YoY owing to one of stake sale gains reported in Q2FY21. Adjusted for one of gains in Q2FY21, PAT grew at 28% YoY, led by strong core PBT and a 42% plunge in provision cost.

On the collection efficiency (CE) front, HDFC`s overall CE in the individual business was 96.3% in September 2020; 99.5% in the case of customers who had not opted for a moratorium.

We have a positive view on HDFC ltd considering the ability to raise capital at a very competitive rate and more provision than regulatory requirement provides comfort on asset quality.

Shares of HOUSING DEVELOPMENT FINANCE CORP.LTD. was last trading in BSE at Rs.2042.65 as compared to the previous close of Rs. 1922.75. The total number of shares traded during the day was 223532 in over 14274 trades.

The stock hit an intraday high of Rs. 2065 and intraday low of 1921. The net turnover during the day was Rs. 444150219.

Source : Equity Bulls

Keywords