Global brokerage firms raise target price on HDFC Ltd post Q2 results; sees up to 20% upside

Global brokerage firms such as Jefferies, Credit Suisse, Morgan Stanley, HSBC, and Goldman Sachs raised their respective target price on HDFC Ltd post September quarter results.

The most aggressive target of Rs 3480 was put out by Jefferies which translates into an upside of about 20 percent from Rs 2888 recorded on November 1, according to data collated by Zee Business TV.

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Housing Development Finance Corporation on Monday reported a robust year-on-year (YoY) quarterly earnings for the quarter ended September.

The financial service company registered double-digit growth in profit and net interest income, amid a strong loan book.

HDFC’s net profit jumped almost 32 per cent to Rs 3780.5 crore in Q2FY22 as compared to Rs 2870.1 crore in the same quarter a year-ago period.

While its net interest income (NII) gained by almost 13 per cent to Rs 4108.5 crore as against Rs 3646.5 crore in Q2FY22.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

Jefferies: Buy| Target raised to Rs 3470 from Rs 3300

Jefferies maintained its buy rating on HDFC Ltd post Q2 results but raised the 12-month target price to rs 3480 from Rs 3300 earlier.  
 
For 2QFY22, HDFC's profit stood at Rs38bn (+32% YoY) which was a tad ahead of estimates. It is seeing strong growth in housing loan disbursement leveraging demand, and market share gain through the distribution network.

Credit Suisse: Outperform| Target raised to Rs 3200 from Rs 2950

Credit Suisse maintained its outperform rating on HDFC Ltd post September quarter results but raised the target price to Rs 3200 from Rs 2950 earlier.

It was a steady quarter, and the growth seems to be picking up for HDFC.

HDFC Ltd provides good exposure to a recovery in the real estate segment & remains largely retail-driven (retail constitutes 78% of AUM). With growth improving, Credit Suisse raised earnings per share (EPS) by 1-2%.

Morgan Stanley: Overweight| Target raised to Rs 3340 from Rs 3160

Morgan Stanley maintained its overweight rating on HDFC Ltd post September quarter results but raised its target to Rs 3340 from Rs 3160 earlier.

Individual disbursement and asset under management (AUM) momentum remain strong. The non-individual loans also expanded on a QoQ basis.
 
However, stage 2 & 3 loans declined on a QoQ basis, but the Provisioning coverage ratio remains stable.
 
HSBC: Hold| Target raised to Rs 3040 from Rs 2960

HSBC maintained its Hold rating on HDFC Ltd post September quarter results but raised its target to Rs 3040 from Rs 2960 earlier.

Goldman Sachs: Neutral| Target raised to Rs 2970 from Rs 2932

Goldman Sachs maintained its Neutral rating on HDFC Ltd post September quarter results but raised its target to Rs 2970 from Rs 2932 earlier.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)