HDFC Ltd: The shares of HDFC Limited, the leading company of NBFC sector, have seen a great boom today. In today’s business, the stock rose nearly 4 percent to reach the price of Rs 2120. It closed at Rs 2040 on Monday. This rise in the stock comes after the second quarter results. On the results, experts say that the finance company has emerged to a great extent from the challenges of Covid 19. The company’s operating performance has been excellent. Both disbursement and collection rate have improved. The demand for housing units has been increasing since September, which is benefiting HDFC. In the coming days, the company will also get the benefit of its leading position.
Let us know that HDFC’s disbursement rate has been excellent due to increasing demand from Hamlon. It has reached the 95 percent level of last year. Low interest rates and festive season demand of Homalon are also benefiting. At the same time, stamp duty charge has also reduced in some states.
What to say of a brokerage house
Brokerage house MK Global says HDFC’s profits have been Rs 2870 crore due to better operating performance and lower provisioning. Asset under management, ie AUM, grew by 11.3 percent year-on-year and 2 percent on quarterly basis. Increased demand for indivisual houses has seen an increase in the company’s EUMM. Management has also said that the demand for housing units has increased after September. This demand may remain stable in the coming days. The collection efficiency was 96.3 percent in September 2020. There is also relief on the fronts of the Moratorium. Most of the customers who had taken the moratorium have now started paying.
According to brokerage house Prabhudas Lilladher, HDFC has performed all-round in terms of growth, margin and asset quality. Earnings have been better even after other income is low.
Lone growth has also been better than expected. Collection efficiency has reached 96 percent in the retail loan book, which is a very strong signal. The company’s cash position is strong, which will benefit further.
At the same time, brokerage house Motilal Oswan also said that the September quarter has been strong in every way. HDFC has handled the challenges of Covid 19 better. Disbursement has increased on a monthly basis. It has also increased annually. According to the brokerage house, the margin is expected to remain stable even after a lot of pressure.
How much can the stock rise
Brokerage house MK Global has suggested a buy out of the stock, giving a target of Rs 2320. At the same time, brokerage house Motilal Oswal has also set a target of Rs 2450, recommending purchase for the stock. Brokerage house CLSA has set a target of Rs 2300 for the stock, giving an outperform rating. Brokerage house Sharekhan has advised to buy the stock, giving a target of Rs 2400.