Result date: 2nd February, 2022
Recommendation: Buy
Target price: Rs. 3,210
HDFC is set to report double digit YoY growth in PAT during the quarter. NII growth is pegged at 6.9% on a YoY basis. Individual loan growth is estimated at 16% even as non-individual loans are beginning to gain momentum. Lack of dividend income will affect HDFC’s other operating income in the quarter. Lower ESOP charges could lead to moderation in operating expenses.
HDFC is a key beneficiary from lowering borrowing costs and consolidation in housing finance sector.
Important management insights to watch out for:
· Credit demand in key segments
· Outlook on spreads, asset quality
Rs. Billion | December 2021 estimates | YoY change | QoQ change |
NII (Ex-assignment income) | 42.8 | 6.9% | 4.2% |
Net operating income | 49.7 | 1.8% | (12.1%) |
PPOP | 45.4 | 4.5% | (11.5%) |
PBT | 40.7 | 8.4% | (13.1%) |
PAT | 33.0 | 12.6% | (13.1%) |
Source: Company, IIFL Research
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