Housing Development Finance Corporation Ltd.

NSE: HDFC  SECTOR: Finance - Housing

2466.65
-84.95 (-3.33%)

Price Summary

Today's High

₹ 2546.3

Today's Low

₹ 2458.1

52 Week High

₹ 2777.7

52 Week Low

₹ 1473.1

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationFair
The stock’s market price justifies its intrinsic value.
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

444045.32216683 Cr.

Advances

439909.9 Cr.

No. of Shares

180.0195902 Cr.

P/E

26.87

P/B

4.43

Face Value

₹ 2

Div. Yield

0.85%

Book Value (TTM)

₹  556.4572

Operating Revenue

58738.92 Cr.

Net Profit

17769.65 Cr.

Promoter Holding

0%

EPS (TTM)

₹  91.8048

Sales Growth

35.505334149979 %

ROE

22.0185674576635 %

ROCE

10.8400501350316 %

Profit Growth

84.4767587926656 %

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

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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 (in Cr.)

1 Year35.51%
3 Year21.05%
5 Year16.47%

Profit Growth (in Cr.)

1 Year84.48%
3 Year33.65%
5 Year24.29%

ROE%

1 Year22.02%
3 Year18.94%
5 Year19.77%

ROCE %

1 Year10.84%
3 Year10.39%
5 Year10.68%

ROA%

3.62471244214497

PEG Ratio

0.32

PAT Margin (%)

30.2519181489888

EPS Growth(%)

83.3478389077034

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Dec 2020 0 0
Sep 2020 0 0
Jun 2020 0 0
Mar 2020 0 0
Dec 2019 0 0
* Figures given above are % of equity capital

 Strengths

  • PAT margin has surged by 8.0307109666588%.
  • Company has a healthy Return on Equity (ROE) track record of 18.9428974571036%.
  • Operating Income has grown well for the company over past 3 years: 3 years CAGR 21.0530950013485%.
  • The company has delivered substantial profit growth of 33.6546132967479% over past 3 years.
  • The company boasts a well-maintained advances growth ratio of 18.4534865784386%.

 Limitations

  • Provision and contingencies have increased by 435.330856945404%.

Quarterly Result (All Figures in Cr.)

PARTICULARS Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020
Operating Revenue 13487.44 20285.47 11975.72 13017.68 11727.96
Other Income 6.68 5.98 5.94 1.61 4.74
Interest Expended 7830.7 7769.55 7661.84 7817.05 7399.11
Operating Expenses 1099.73 3336.86 1584.23 1560.78 765.86
Total Provisions 0 0 0 0 0
Depreciation 33.31 42.05 43.15 34.63 35.95
Profit Before Tax 4530.38 9142.99 2692.44 3606.83 3531.78
Tax 568.85 770.5 459.91 555.31 661.66
Net Profit 3961.53 8372.49 2232.53 3051.52 2870.12

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Operating Income 30905.12 33112.79 40689.22 43348.05 58738.92
Other Income 51.45 46.81 18.27 29.97 24.42
Interest 19409.15 20934.56 23543.74 27896.69 31075.88
Operating Expenses 693.27 762.17 1806.57 1204.96 1139.55
Total Provisions 746.05 736.23 2167.54 1157.6 6196.99
Exceptional Items 0 0 0 0 0
Profit Before Tax 10108.1 10726.64 13189.64 13118.77 20350.92
Tax 3015 3284 2230.3 3486.31 2581.27
Profit After Tax 7093.1 7442.64 10959.34 9632.46 17769.65
Adjusted EPS (Rs.) 44.9 46.85 65.39 55.96 102.59

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Equity and Liabilities
Share Capital 315.97 317.73 335.18 344.29 346.41
Total Reserves 33805.09 39327.65 64929.73 77011.18 85811.65
Borrowings 109292.25 150062.23 241956.03 299021.25 345839.88
Other N/C liabilities 4642.94 7853.85 -1096.96 -588.03 -1269.55
Current liabilities 140820.37 139744.58 91506.11 82157.95 91797.23
Total Liabilities 288876.62 337306.04 397630.09 457946.64 522525.62
Assets
Loans 232870.54 264679.43 357352.85 400729.66 439909.9
Net Block 664.53 642.34 644.5 651.33 1348.95
Capital WIP 0 0 0 0 0
Investments 14837.84 16829.94 20854.03 30066.71 40665.54
Other Loans 2927.94 6850 4379.5 3980.89 4571.57
Other N/C Assets 588.32 1295.02 175.21 1443.11 1406.97
Current Assets 36987.45 47009.31 14224 21074.94 34622.69
Total Assets 288876.62 337306.04 397630.09 457946.64 522525.62
* Other Non-current Liabilities include Net deferred Liabilities

Corporate Actions

Company Presentations

Company News

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 17769.65 Cr and the compounded growth of profit in the past 3 years is 33.6546132967479 %. The PAT margin of HDFC is 30.2519181489888 %.

  • 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 grew by 83.3478389077034 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a healthy ROE track record. The ROE of HDFC is at 22.0185674576635 % 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 2466.65. The stock is trading at a current P/E ratio of 15.8923788321253 and the average historical P/E for the last 5 years was 27.1284886439738.

  • P/B ratio can be one of the best metrics to value such companies. Currently, HDFC is trading at a P/B of 4.43277578221649 . The average historical P/B for the last 5 years was 4.73380253982611. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

Brief about HDFC

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