About the Company:
HDFC Ltd is the pioneers of Housing Finance in India. It is Indian financial conglomerate based in Mumbai Company. The company is diversified into banking, life and general insurance, asset management, venture capital, realty, education, deposits and education loans.
QoQ & YoY Performance:
India’s leading NBFC has declared the results for the second quarter of fiscal year ending Mar’20
- Revenue from Core Operations: Interest Income from lending loans for housing is landed to 12,643.19 crores, that has witnessed an increase of 9.8% in YoY basis while a nomial slippage by 0.7% is witnessed on QoQ basis.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs.32,850.89 crores, climbed by 41.36% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs. 13,704.39 crores, increased by 17.46%. EBITDA numbers increased by 65.44%.
- YoY Performance: The Company has reported 43.16% increase in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company have witnessed a jump of 14.59%. EBITDA numbers up by 74.27%.
- Profitability of the company: Net profits of the company landed to Rs. 10,748.69 crores, surged by 203.66% QoQ and 76.3% YoY.
As per Lokesh Sethia, SEBI Registered, the housing lender has reported decent result in line with expectations of the market. Net profits of the company have seen an upside of 76.3% YoY. Revenue from their core operations are surged with a margin of 9.8%. Finance cost of the lender was increased by 10.65%. On a P/E multiple of 35.38, the stock is running at a price of Rs. 2,181.30. However, the Industry P/E stood at 23.91 and the stock is overvalued but stable asset quality in comparison to its peers, the stock deserve high premium. We advise you to 'Buy and Hold' for a target of Rs. 2,500 in short to medium term.