Sharekhan is bullish on Housing Development Finance Corporation recommended buy rating on the stock with a target price of Rs 3589 in its research report dated December 09, 2021.
Broker Research
December 10, 2021 / 01:14 PM IST
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// else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; 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Sharekhan’s research report on Housing Development Finance Corporation
We believe HDFC is the strongest player in housing finance space and better-placed among all its peers with a robust liability franchise, healthy balance sheet with growth levers. HDFC has consistently performed well as compared to its peers across business cycles. Better affordability and a change in housing needs post the pandemic, make HDFC a key beneficiary of changing sector dynamics. We expect the company’s loan book to witness strong growth going ahead with individual loan book to remain healthy for the company; on the asset quality front, HDFC has been able to maintain its GNPAs better than its peers (September GNPAs were at 2% with restructured loans constituting 1.4% of loan book).
Outlook
We re-iterate a Buy on HFDC with a SOTP based PT of Rs. 3,589. At CMP, HDFC trades at 3.9x of FY23E P/BV. The stock has corrected by 14% from the highs and touched a low of Rs. 2,656.
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