 "HDFC nears 52-week low")
Shares of Housing Development Finance Corporation (HDFC) was down 1.5% at Rs 1,100 on the National Stock Exchange (NSE). The stock is trading close to its 52-week low of Rs 1,093, the same level as it was in August last year.
Thus far in 2016, the stock of India's largest and oldest mortgage lender has underperformed the market by falling 13% as compared to 10.1% decline in the Nifty 50 index.
Post October-December quarter (Q3FY16) results, the stock was down 6% against 4% fall recorded by the benchmark index since January 27.
HDFC reported a modest quarter as net profit growth remained modest at 7% year-on-year (YoY) led by fall in capital gains, other income and higher depreciation. Net interest income (interest earned minus interest expended) grew by 10% YoY. Provisions during the quarter were higher due to higher standard asset provisions on non-individual loan book.
According to analysts at Prabhudas Lilladher, HDFC's loan growth remains under pressure as HDFC Bank has been buying nearly around 70% of loans it is originating for HDFC and we expect the trend to continue.
“HDFC’s retail loan portfolio continues to growth at healthy pace; however growth of high yielding corporate loans remains subdued. This coupled with hyper competition in mortgage space is exerting pressure on near term growth and spreads/margins”, said analysts at Motilal Oswal Securities in report dated January 27.
Overall asset quality remains healthy, with gross non-performing assets (NPA) at 72 basis points (up 3bp YoY). Individual GNPAs at 54bp (stable YoY) and GNPAs in corporate book increased 9bp YoY (stable QoQ) to 1.12%, added report.
At 10:54 AM, the stock was down 1.3% at Rs 1,102 on the NSE. A combined 774,129 shares changed hands on the counter on the NSE and BSE.
Thus far in 2016, the stock of India's largest and oldest mortgage lender has underperformed the market by falling 13% as compared to 10.1% decline in the Nifty 50 index.
Post October-December quarter (Q3FY16) results, the stock was down 6% against 4% fall recorded by the benchmark index since January 27.
HDFC reported a modest quarter as net profit growth remained modest at 7% year-on-year (YoY) led by fall in capital gains, other income and higher depreciation. Net interest income (interest earned minus interest expended) grew by 10% YoY. Provisions during the quarter were higher due to higher standard asset provisions on non-individual loan book.
According to analysts at Prabhudas Lilladher, HDFC's loan growth remains under pressure as HDFC Bank has been buying nearly around 70% of loans it is originating for HDFC and we expect the trend to continue.
“HDFC’s retail loan portfolio continues to growth at healthy pace; however growth of high yielding corporate loans remains subdued. This coupled with hyper competition in mortgage space is exerting pressure on near term growth and spreads/margins”, said analysts at Motilal Oswal Securities in report dated January 27.
Overall asset quality remains healthy, with gross non-performing assets (NPA) at 72 basis points (up 3bp YoY). Individual GNPAs at 54bp (stable YoY) and GNPAs in corporate book increased 9bp YoY (stable QoQ) to 1.12%, added report.
At 10:54 AM, the stock was down 1.3% at Rs 1,102 on the NSE. A combined 774,129 shares changed hands on the counter on the NSE and BSE.
