HDFC shares: Brokerages bullish on HDFC as quarterly profit beats estimates : vimarsana.com

HDFC shares: Brokerages bullish on HDFC as quarterly profit beats estimates


HDFC reported a 2% fall in its quarterly profit at Rs 3,001 crore on lower dividend and investment incomes but the earnings still beat analysts' estimates.
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"We retain our earnings estimates and expect HDFC to deliver 14-15% core PPOP (Pre-Provision Operating Profit) growth vs less than 10% core PPOP/share growth over FY15-20 as growth outlook for the core business remains strong. Valuations have corrected from 3 times one-year forward price-to-book to 2 times," said CLSA, retaining a target price of Rs 3,000.
Kotak Institutional Equities said HDFC has reported a strong performance with a stable net interest margin and a marginal rise in stressed loans despite a challenging business environment.

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