Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd.
For Q1FY21, HDFC Ltd reported a mixed set of numbers. NII grew by 10% YoY however, adjusting higher liquidity equity investment made in recent years NII grew 17% YoY. AUM grew at 12% YoY and 3% Sequentially, The individual book grew 11% and non-individual grew at 15% YoY. Other income increased owing to stake sale. PAT declined 5% YoY largely impacted due to higher provision cost.
The moratorium for individual loans reduced 600bps to 16.6% and non-individual declined to 460bps. HDFC Ltd has taken a total Rs954cr worth of COVID provision, which we believe is a bit lower. However, HDFC has an additional provision of 1.47% of AUM, this is well above the regulatory requirement. It has a very strong CET of 16.2%. Additional provision, strong CET, and healthy pre-provision profit provide comfort on balance sheet quality.
Shares of HOUSING DEVELOPMENT FINANCE CORP.LTD. was last trading in BSE at Rs.1782.85 as compared to the previous close of Rs. 1811. The total number of shares traded during the day was 423934 in over 22564 trades.
The stock hit an intraday high of Rs. 1809.4 and intraday low of 1760.2. The net turnover during the day was Rs. 757156367.