HDFC shares under pressure despite good Q2 earnings; brokerages tag Buy - check price targets

Shares Housing Development Finance Corporation Ltd (HDFC) traded under pressure on Friday, November 4, despite the country's largest private mortgage lender reporting good numbers in the July-September quarter of the current fiscal. According to a regulatory filing, the company reported a 24 per cent jump in consolidated net profit at Rs 7,043 crore in the quarter. The profit was mainly driven by higher retail loan sales that hit an eight-year high of 36 per cent.

The stock gained initially after opening in red but succumbed to the selling pressure in the benchmark indices. At 12:19 PM, the scrip quoted Rs 1,492 apiece on NSE, down by 1 per cent.

However, most of the brokerage firms have maintained a 'Buy' call and some have raised the target. Brokerage firm HSBC has maintained 'Buy' call and revised the target to Rs 2930 from Rs 2850. Similarly, Nomura has given a 'Buy' call with a target price of Rs 2850. Macquaire has maintained 'outperform' with the target of Rs Rs 3060.

Company's total income on a consolidated basis rose to Rs 43,927 crore in the said quarter from Rs 38,603 crore a year ago. On a standalone basis, its net profit increased by 18 per cent to Rs 4,454 crore from Rs 3,780 crore a year back.

The total income (standalone) rose to Rs 15,036 crore from Rs 12,226 crore in the same quarter last year. The net interest income (NII) for the second quarter stood at Rs 4,639 crore compared to Rs 4,110 crore in the previous year, representing a growth of 13 per cent. Net interest margin stood at 3.4 per cent at the end of the September quarter.

While the scrip has corrected 2.23 per cent in the past five days. On year-to-date basis, the counter has given negative returns of 5.97 per cent. Similarly in the past one year, HDFC shares have given negative returns of 14.5.

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The 52-week high and low of the share are Rs 3021 and 2026 respectively.