The stock logged a gain of 1 per cent after the results on Monday amid a sell-off in equities.ETMarkets.com|May 14, 2019, 11.01 AM ISTAFPShares of HDFC traded 0.92 per cent down at Rs 1,933.70 on BSE around 10:30 am. NEW DELHI: Shares of HDFC declined over 1 per cent in morning trade on Tuesday, a day after the company reported a 27 per cent increase in its net profit for the quarter ended March 2019 boosted by rising individual loans.
For the full year, HDFC’s net profit fell 12 per cent to Rs 9,633 crore. However, the company said that the reported profit for last year is not comparable to this year because HDFC had listed HDFC Life that generated investment income.
The stock logged a gain of 1 per cent after the results on Monday amid a sell-off in equities. However, it failed to hold on to the momentum on Tuesday even as brokerages showed faith in the stock.
Global brokerage CLSA said HDFC is its top pick among NBFCs. It maintained buy recommendation on the stock with a target price of Rs 2,500 and underscored that superior access to funds will support growth and gains in share.
The brokerage expects the company’s weaker loan growth to normalise from FY20 onwards.
Motilal Oswal Securities also maintained its buy recommendation on the stock with a target price of Rs 2,330, adding that the company is well placed in the NBFC segment when the sector is facing a liquidity crunch.
“In the current stress liquidity period for NBFCs, the preference of debt markets and banks would be toward well-established and strong parentage companies and HDFC is well placed to capitalize on this,” said the brokerage.
Shares of HDFC traded 0.92 per cent down at Rs 1,933.70 on BSE around 10:30 am.
Commenting feature is disabled in your country/region.Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service