Housing Development Finance Corporation Ltd.

SECTOR: Finance - Housing

1763.75
₹ -72.5 (-3.95%)
Today's High: 1827.95 Today's Low : 1759.85
52 Week High: 2499.65 52 Week Low : 1473.10
 FinStar
FinStar Indicates the overall health and quality of a stock based on Finology Research.
Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationExpensive
The stock is at a premium valuation at this point.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

 Company Essentials

Market Cap

305490.528459875 Cr.

P/E

16.6

P/B

3.39

Face Value

₹2

Div. Yield

1.32%

Book Value (TTM)

520.0718

Advances

400759.63 Cr.

Operating Revenue

43348 Cr.

Net Profit

9632 Cr.

Promoter Holding

0.0%

EPS (TTM)

106.2249

Sales Growth

6.53 %

ROE

13.71 %

ROCE

13.01 %

Profit Growth

-12.11 %

No. of Shares

173.2051189 Cr.

Add your own Ratio
* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

 Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

 Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

 Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 Income Growth

1 Year6.53%
3 Year11.94%
5 Year12.42%

 Profit Growth

1 Year-12.11%
3 Year10.74%
5 Year12.1%

 ROE

1 Year13.71%
3 Year18.34%
5 Year19.43%

 ROCE

1 Year13.01%
3 Year11.9%
5 Year11.8%

 ROA%

2.25

 PEG Ratio

0

  PAT Margin (%)

22.22

 EPS Growth(%)

-14.43

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Mar 2020 0.0 0.0
Dec 2019 0.0 0.0
Sep 2019 0.0 0.0
Jun 2019 0.0 0.0
Mar 2019 0.0 0.0
* Figures given above are % of equity capital

 Strengths

  • Company has a healthy Return on Equity (ROE) track record of 18.34%.
  • The company boasts a well-maintained advances growth ratio of 19.8366901835298%.

 Limitations

 Looks like the company does not have any serious limitations.

 Quarterly Result (All Figures are in Crores.)

Particulars Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020
Operating Revenue 11580.05 12990.29 13487.44 20285.47 11975.72
Other Income 6.53 5.82 6.68 5.98 5.94
Interest Expended 7181.85 7739.27 7830.7 7769.55 7661.84
Operating Expenses 700.43 1242.5 1099.73 3336.86 1584.23
Total Provisions 0 0 0 0 0
Depreciation 13.41 29.23 33.31 42.05 43.15
Profit Before Tax 3690.89 3985.11 4530.38 9142.99 2692.44
Tax 829.31 782.01 568.85 770.5 459.91
Net Profit 2861.58 3203.1 3961.53 8372.49 2232.53

 Profit & Loss (All Figures are in Crores except Adjusted EPS in Rs.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Operating Income 27401 30905 32111 40689 43348
Other Income 70 51 1049 18 30
Interest 17975 19409 20935 23544 27897
Adjusted EPS 38 45 47 65 56
Total Provisions 283 746 736 2168 1158
PBT & Exceptionals 8624 10108 10727 13190 13119
Exceptional Items 0 0 0 0 0
Profit Before Tax 8624 10108 10727 13190 13119
Operating Expenses 589 693 762 1805 1204
Profit After Tax 5990 7093 7443 10959 9632

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 314.94 315.97 317.73 335.18 344.29
Total Reserves 30655.03 33805.09 39327.65 64929.73 77011.18
Borrowings 97602.34 109292.25 150062.23 89465 104085.75
Other N/C liabilities 4188.36 4642.94 7853.85 -345.28 301.37
Current liabilities 121190.99 140820.37 139744.58 243245.46 276204.05
Total Liabilities 253951.66 288876.62 337306.04 397630.09 457946.64
Assets
Loans 201680.43 232870.54 264679.43 357380.86 400759.63
Net Block 676.96 664.53 642.34 644.5 651.33
Capital WIP 0 0 0 0 0
Investments 13691.7 14837.84 16829.94 395.13 321.32
Other Loans 2473.56 2556.76 6850 3488.82 2878.97
Other N/C Assets 2854.27 959.5 1295.02 175.21 14.23
Current Assets 32574.74 36987.45 47009.31 35545.57 53321.16
Total Assets 253951.66 288876.62 337306.04 397630.09 457946.64
* Other Non-current Liabilities include Net deferred Liabilities

 Corporate Actions

 Ratings & Research Reports

 Company Presentations

 HDFC Stock Price Analysis and Quick Research Report

Is HDFC an attractive stock to invest in?

 

Housing finance companies is a highly concentrated business-facing fierce competition and the industry has remained competitive for several years. The growth of the economy and also increase in the per capita income of individuals impact the housing industry as a whole.

These companies provide finance for housing in India to individuals and corporations. The housing finance companies majorly cater to low and middle-income individuals. The proportion of loans coming from housing companies is significantly increasing.

Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow. Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry. Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

To understand the functions of the HDFC better, you must go through the following points:

Key Financials –

  • Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of the company is Rs 96320 Cr and the compounded growth of profit in the past 3 years is 10.7377014352518 %. The PAT margin of HDFC is 22.2212123085611 %.

  • EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In HDFC , the EPS declined by -14.43 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a average ROE track record. The ROE of HDFC is at 13.7083373151599 % for the latest year.

  • P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of HDFC is worth at the current levels at Rs 1596.25. The stock is trading at a current P/E ratio of 35.16 and the average historical P/E for the last 5 years was 30.844.

  • P/B ratio can be one of the best metrics to value such companies. Currently, HDFC is trading at a P/B of 4.44102230196384 . The average historical P/B for the last 5 years was 5.406. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

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