Biggest Nifty contributor! HDFC stock soars, share price up 9.5% in 4 days amid Q1 earnings declarations

Being the biggest contributor to the Nifty Index’s surge since yesterday, the shares of HDFC jumped over 4.5 per cent to Rs 2673.5 per share on the BSE intraday trade on Wednesday. The stock has been trading higher for the fourth consecutive day today and surged around 9.5 per cent. 

This recent surge is on the back of a steady performance for the quarter ended June 2021 (Q1FY22), as the country's largest mortgage lender HDFC reported a 31 per cent jump in its consolidated net profit at Rs 5,311 crore in the quarter ended June 2021, as against Rs 4,059 crore in Q1FY21. 

See Zee Business Live TV Streaming Below:

While the total income of the finance company during Q1FY22 grew by Rs 30,997 crore from Rs 29,959 crore in Q1FY21. HDFC said the demand for housing continues to remain strong and business has reverted to normalcy in the months of June and July 2021 amid the impact of the COVID-19. 

HDFC said its gross non-performing loans as of June 30, 2021, stood at Rs 11,120 crore, equivalent to 2.24 per cent of the loan portfolio. The GNPA ratio in Q4FY21 stood at 1.98 per cent. 

Macquarie has maintained an Outperform stance on HDFC has set a target of Rs 2,960 per share, after its Q1 results. The asset quality of HDFC remains the biggest plus point and weaker loan growth is due to a decline in the non-individual book, the brokerage said in its report.  

While Morgan Stanley Morgan Stanley maintains an Overweight rating on HDFC, for a target at Rs 3,160 per share. The brokerage trims FY22/23 EPS estimates by 6/5 per cent respectively. It says stage 2+3 loans appear to have peaked and NII & Core PPoP growth is strong. 

HDFC is the largest non-banking finance company (NBFC) engaged in the housing finance business. It has demonstrated consistent performance in terms of both business growth as well as asset quality.