HDFC (HDFC IN)

Rating: BUY | CMP: Rs2,888 | TP: Rs3,322

November 1, 2021 All round beat

Q2FY22 Result Update Quick Pointers:

☑ Change in Estimates | ☑ Target |  Reco  Restructured book: 1.4%; collection efficiency at 98%, Stage 2: 6%

Change in Estimates HDFC outperforms many key players in the space both on growth and asset
Current Previous quality in its Q2FY22 earnings. Co. clocked healthy 4%QoQ/10%YoY loan
FY23E FY24E FY23E FY24E
Rating BUY BUY
growth with 75% of traction emerging from individual home loans and lion’s
Target Price 3,322 3,214 share of non-individual growth from LRD. The asset quality stood stable as
NII (Rs.) 193,982 223,024 193,550 244,348
% Chng. 0.2 (8.7)
GNPAs feel to 2% vs 2.2% the previous quarter. The total restructured stock
PPoP (Rs.) 221,205 253,460 220,773 274,793 at 1.4% also stands lowest in the industry with Co. maintaining Stage 3
% Chng. 0.2 (7.8)
coverage at 49%. Prepayments are down to 9% vs historical run-rate of 10-
EPS (Rs.) 85.4 99.8 85.3 108.0
% Chng. 0.2 (7.6) 12%. Besides, steady-state spreads at 2.3% and NIMs at 3.6% bespeaks better
liability management especially in light of competitive intensities.
Key Financials - Standalone
Y/e Mar FY21 FY22E FY23E FY24E
Co. stands ahead of the curve in proactively providing and recognizing
Net Int.Inc. (Rs m) 149,700 174,505 193,982 223,024 stress. Such a resilient balance sheet with sustainable quality growth (17%
Growth (%) 17.4 16.6 11.2 15.0 CAGR, <2% NPAs) and rich return profile (ROE:21%/RoA:2%+) over FY22-24
Op. Profit (Rs m) 177,631 203,324 221,205 253,460
PAT (Rs m) 120,273 136,456 154,136 180,046
would continue to demand higher valuation multiple. We build slightly higher
EPS (Rs.) 77.8 75.6 85.4 99.8 growth and NII and growth into FY22 estimates and raise costs estimates for
Gr. (%) - - - - FY24. We maintain core book multiple at 3.4x PABV and shift to Sep’23
DPS (Rs.) 25.0 56.0 40.0 40.0
Yield (%) 0.9 1.9 1.4 1.4
estimates. Subsequently, our SoTP now stands at Rs 3,322 (Previous
Margin (%) 3.2 3.3 3.2 3.1 Rs3,214) with standalone business valued at Rs 1,811 and subsidiaries at Rs
RoAE (%) 36.8 23.9 20.9 21.6 1,510. Maintain BUY.
RoAA (%) 2.5 2.2 2.1 2.1
PE (x) 37.1 38.2 33.8 28.9
P/BV (x) 8.2 5.9 5.4 4.9
 Growth upbeat; spreads stand maintained: For the quarter, loans reported
P/ABV (x) 9.0 6.5 5.8 5.2 growth of 10% YoY/4% QoQ at Rs5,208bn exceeding our estimates at
Rs5,130bn. Individual disbursements reported Individual disbursement
registered 80% YoY growth during the quarter. While individual loan book grew
Key Data HDFC.BO | HDFC IN
52-W High / Low Rs.2,948 / Rs.1,916 by 23% YoY. Management mentioned that the Co. recorded highest ever
Sensex / Nifty 60,138 / 17,930 disbursements during Oct’21-month and that the pipeline for non-individual
Market Cap Rs.5,220bn/ $ 69,720m
Shares Outstanding 1,808m
loans too remain healthy. The individual loans (75% of overall AUMs) grew
3M Avg. Daily Value Rs.16339.74m 15.4%YoY/4%QoQ and the non-individual loans declined 4%YoY but grew
4.5%QoQ led by LRD portfolio. Subsequently, spreads at 2.29% and NIMs at
Shareholding Pattern (%) 3.6% stood healthy and for the quarter indicative of pricing power sustenance.
Promoter’s - Backed by sufficient provisions, liquidity and capital buffers, we maintain 17%
Foreign 71.95
Domestic Institution 16.99
loan CAGR for FY22-24.
Public & Others 11.06
Promoter Pledge (Rs bn) -  Best-in-class asset quality: The asset quality stood stable as GNPAs feel to
2% vs 2.2% the previous quarter. The total restructured stock at 1.4% also
Stock Performance (%) stands lowest in the industry with Co. maintaining Stage 3 coverage at 49%.
1M 6M 12M Prepayments are down to 9% vs historical run-rate of 10-12%. The Stage stock
Absolute 6.5 19.3 50.1
Relative 4.1 (3.2) (1.1)
remained steady at 6% and as per Management the Co. has received 50% of
the resolution amount for the large non-individual NPA account and the
remainder is expected over next few quarters. Besides, the overall collection
Shweta Daptardar
shwetadaptardar@plindia.com | 91-22-66322245
efficiency for individual loans for Sep’21 stood at 98% exhibiting marginally
improvement QoQ. Moreover, restructured book at mere 1.4% and high order
Pravin Mule
pravinmule@plindia.com | 91-22-66322257 coverage at 53% coupled with healthy Tier I at 22% are indicative of sufficient
shock absorbers. With such a resilient balance sheet, we maintain our GNPA
estimates over FY22-23.

November 1, 2021 1
 HDFC

All round beat; asset quality steady

PAT grew by 26%QoQ/32%YoY to YoY gr. QoQ gr.
P&L (Rs mn) Q2FY22 Q2FY21 Q1FY22
(%) (%)
Rs37.8bn with slight beat from our
Interest on advances 105,790 108,251 (2.3) 105,234 0.5
estimates [ vs. PLe of Rs31.8bn] due
to lower provisions and better NII Other interest income 1,041 1,768 (41.1) 1,237 (15.9)
Total interest income 106,831 110,020 (2.9) 106,471 0.3
Provisions shrunk 34% QoQ and
Interest expense 65,735 73,991 (11.2) 65,219 0.8
were marginally 4% up YoY to
Net Interest Income 41,096 36,028 14.1 41,252 (0.4)
Rs4.5bn and stood below estimates [
vs. PLe of Rs6.2bn] Capital Gains - (6) NA - NA
Other Income 15,433 7,314 111.0 10,161 51.9
NII stood flat QoQ but grew 14% YoY Total other income 15,433 7,308 111.2 10,161 51.9
to Rs41.1bn [ vs. PLe of Rs38.8bn].
Total income 56,529 43,336 30.4 51,412 10.0
Loan book at Rs521bn stood almost
in-line [PLe: Rs513bn] growing Operating expenses 5,299 3,658 44.8 5,507 (3.8)
11%YoY. Individual book grew -Staff expenses 2,801 1,811 54.7 3,197 (12.4)
decent 15%YoY. -Other expenses 2,497 1,847 35.2 2,310 8.1
Operating profit 51,231 39,678 29.1 45,906 11.6
Other Income was good with
56%QoQ/111% YoY to Rs15.4bn [ Core operating profit 51,231 39,678 29.1 45,906 11.6
vs. PLe of Rs16bn] Total provisions 4,520 4,360 3.7 6,860 (34.1)
Profit before tax 46,711 35,318 32.3 39,046 19.6
Operating expenses declined 4%QoQ
Tax 8,906 6,617 34.6 9,039 (1.5)
to Rs5.3bn [ vs. PLe of Rs6.2bn]
Profit after tax 37,805 28,701 31.7 30,007 26.0
PPoP was strong at 12%QoQ/29%
YoY to Rs51.2bn [ vs. PLe of Balance Sheet (Rs mn)
Rs48.6bn]
Loan composition 5,207,980 4,751,210 9.6 5,004,900 4.1
GNPA stood at 2.0% vs 2.24% in the -Individual loans (%) 75.1 71.4 3.8 75.1 (0.0)
previous quarter standing higher than -Corporate loans (%) 23.7 27.2 (3.4) 23.6 0.1
our estimates [ vs. PLe of 2%] - Others (%) 1.1 1.5 (0.3) 1.2 (0.1)

Borrowings composition 4,627,370 4,208,890 9.9 4,518,691 2.4

-Term loans (%) 24.2 21.0 3.2 22.8 1.4
-Bonds/ Deb./ CPs (%) 41.0 43.8 (2.9) 40.2 0.7
-Deposits (%) 34.9 35.2 (0.4) 34.0 0.9

NIMs 3.22 3.06 16 3.30 (8)

Asset quality (%)
Gross NPL 1.98 1.83 15 2.24 (26)

Others / Ratios (%)

Cost-income ratio 9.4 8.4 0.9 10.7 (1.3)
Int. expense/Int. income 61.5 67.3 (5.7) 61.3 0.3
Tier-I 21.3 19.5 2 21.3 (20)
Source: Company, PL

November 1, 2021 2
 HDFC

Key Concall Takeaways:

Business Update:

 Q1FY22 was partially impacted due to COVID second wave, but from June
2021 there was a sharp recovery which continued in Q2FY22.

 Currently have a strong pipeline for non-individual segment and foresee

H2FY22 to be better than H1. Last year non individual segment got impacted
due to covid second wave.

 The demand for home loans was strong in affordable housing as well as high
end segments (which was muted in last 2-3 years). Housing is more affordable
now than in the past due to rising income and lower interest rates.

 The recent fund raised will be utilised for affordable housing segment.

 Total disbursements registered a growth of 44% YoY at Rs 380bn. During the

quarter, loans disbursed under ECLGS wer Rs 17380mn.

 Individual disbursements in October 2021 were the highest ever in non-quarter

month end.

 LRD segment continues to be profitable and though margins are lower in this
segment, asset quality wise its less risky.

 Growth in construction finance was slow as new projects were stopped.

Disbursement in this segment will kick start from Q3/Q4 FY22. Tier 2 cities like
Ahmedabad, Jaipur doing well.

Asset Quality & Collection Efficiency:

 The GNPA stood at 2.0% (Rs 103bn). NPAs were slightly higher led by
slippages due to covid second wave.

 Some spike in stage 3 was due to classification of stage 2 to stage 3 (Even if

they are not more than 90 dpd).

 Stage 1: constitutes 91.3%, Stage 2: 6.2% and Stage 3: 2.5% of total loan
book.

 The cumulative collection efficiency for individual loans stood at around 98%
during Q2FY22. The collection efficiency pre covid stood at ~98%.

 Customers are making payments are as per schedule. The pre repayment rate
in Q2FY22 was lower at 9.6% (annualised) vs historic run rate of 10-12%.

Restructured book:

 The total restructured book (OTR 1 & 2.0) stood at 1.4% of the loan book (in
Q1FY22 it was 0.9% of the loan book). All restructured loans are classified as
stage 2 assets.

 Out of total restructured book 63% was towards individual and 37% towards
non individual.

November 1, 2021 3
 HDFC

 Of total restructured loans ~35% was just in one account.

 50% of OTR exposure to be settled in near future (by Q3FY22).

NIMs and Credit Cost:

 NIMs for H1FY22 stood at 3.6 (last year NIMs were impacted due to a negative
carry)

 The provisions as on Q2FY22 were Rs 133400mn vs required provisions of Rs

66050mn.

 The total provisions stood at Rs 66050 mn. Of which Rs 28440 mn was towards
provisioning for standard assets and Rs 37610 mn NPAs.

 The cumulative COVID-19 related provisions stood at Rs 13040 mn.

 The annualised credit cost stood at 32 bps vs 50 bps in Q1FY22. As pandemic

impact recede further, credit cost is expected to come down further in next 2-3
years (dependant on third wave)

Others:

 In total borrowings, ~80% are linked to external benchmark.

 Earned Rs 1280 mn on sale of investment during the quarter.

 Received dividend income from subsidiaries of Rs 11710mn.

 As of Sept-21, total investment in group companies stood at Rs 200bn (nil in

Q2FY22)

 Will continue to monitor investment made in Bandhan Bank (which is more of

a financial investment than a strategic one).

Spreads on non-individual inch up marginally Loan mix stable QoQ

Spread - Individual Biz Spread - Non-Individual Biz Individuals Corporates Others

3.40%
24%
24%
25%
26%
26%
26%
26%

27%
27%
27%

28%
28%

28%
28%
29%

29%
29%

29%
29%
29%
30%

29%

3.20%
3.00%
2.80%
2.60%
75%
75%
74%

2.40%
73%
72%
72%
72%
71%

71%
71%

71%
70%

70%
70%

70%
70%

69%

69%
69%
69%

69%
69%

2.20%
2.00%
1.80%
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19

4Q19
1Q20
2Q20
3Q20
4Q20
2Q21
3Q21
4Q21
1Q22
2Q22
3Q19

1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22

Source: Company, PL Source: Company, PL

November 1, 2021 4
 HDFC

Deposit share inches up marginally QoQ Stable borrowing mix

35%

35%
37% Deposits Share Term loans Bonds Deposits

34%
34%
33%

33%
33%
33%

35%
32%

100%

32%
32%

28%
29%

29%
31%

30%
30%

30%
30%

30%
31%

31%

31%
32%
32%
32%
33%

33%
33%

33%

34%

35%
34%
35%
31%
31%

33% 80%

30%
30%

30%
30%

30%
31% 29%
29%

60%
28%

43%
50%
47%
49%

46%

43%
54%

43%
47%

42%

41%
40%
54%
57%

44%
57%
56%

56%
59%
53%

56%
55%
29% 40%

27% 20%

25%

24%
24%
24%

24%

23%
23%
23%
21%
21%
21%

21%
18%
16%
15%
14%

13%

13%
13%
12%
12%

12%
25% 0%

1Q17
2Q17
3Q17

1Q18
2Q18
3Q18
4Q18
1Q19
2Q19

4Q19
1Q20
2Q20
3Q20
4Q20
1Q21

3Q21
4Q21
1Q22
2Q22
4Q17

3Q19

2Q21
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18

4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21

3Q21
4Q21
1Q22
2Q22
3Q18

2Q21

Source: Company, PL Source: Company, PL

Marginal improvement in NPA QoQ Individual segment GNPA improved by 27bps QoQ

Net NPLs Gross NPLs Gross NPL - Individual Gross NPL - Non Individual
2.5% 6.0%

2.0% 5.0%
4.0%
1.5%
3.0%
1.0%
2.0%
0.5% 1.0%
0.0% 0.0%
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19

3Q19
4Q19
1Q20
2Q20
3Q20
4Q20

2Q21
3Q21
4Q21
1Q22
2Q22

2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19

4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
2Q19

1Q21

3Q19

Source: Company, PL Source: Company, PL

ECL/EAD remains largely stable

As per IND AS Q2FY22 Q2FY21 YoY gr. Q1FY22 QoQ gr.
Gross Stage 3 12,993 10,370 25.3% 13,020 -0.2%
ECL Provision Stage 3 7,126 5,083 40.2% 6,290 13.3%
Net Stage 3 5,867 5,287 11.0% 6,730 -12.8%
Coverage Ratio% Stage 3 55% 49% 582.9 48% 653.5
Gross Stage 1 & 2 507,365 463,743 9.4% 486,980 4.2%
ECL Provision Stage 1 & 2 6,214 7,221 -13.9% 6,899 -9.9%
Net Stage 1 & 2 501,151 456,522 9.8% 480,081 4.4%
ECL Provision % Stage 1 & 2 1.22% 1.56% -33.2 1.42% -19.2
ECL/EAD 2.56% 2.60% -3.2 2.64% -7.4
Source: Company, PL

November 1, 2021 5
 HDFC

We increase FY22 estimates to incorporate better NII and growth

Old New % Change
(Rs mn)
FY22E FY23E FY24E FY22E FY23E FY24E FY22E FY23E FY24E
Net interest income 171,276 193,550 244,348 174,505 193,982 223,024 1.9% 0.2% -8.7%
Operating profit 197,094 220,773 274,793 203,324 221,205 253,460 3.2% 0.2% -7.8%
Net profit 131,794 153,813 194,942 136,456 154,136 180,046 3.5% 0.2% -7.6%
EPS (Rs) 73.0 85.3 108.0 75.6 85.4 99.8 3.5% 0.2% -7.6%
Price target, (Rs) 3,214 3,322 3.4%
Recommendation BUY BUY

Source: PL

Core multiple maintained at 3.4x PBV SEP’23E; maintain BUY

PT calculation and upside
Fair price – EVA 2,628
Fair price - P/ABV 994
Average of the two 1,811
Target P/ABV 3.4
Target P/E 23.3
Value of subs/associates 1,510
Fair value of consol. Entity 3,322
Current price, Rs 2,712
Upside (%) 22%
Dividend yield (%) 1%
Total return (%) 23%
Source: PL

SOTP Metrics: core valued at 3.4x PABV MAR’23E, subsidiaries 45.5% of SOTP
HDFC SOTP valuation Stake (%) Value per share (Rs) Basis
HDFC Parent (A) 1,811 Avg. of EVA and two-stage GGM, 3.4x P/ABV MAR'23E
Subsidiaries / Associates
HDFC Bank 21.2 1,324 Value of stake in HDFC Bank as per our fair value
Life insurance 50.0 129 Appraisal value & New Business premium
AMC 52.7 276 9% of AUM
General Insurance 50.5 51 18x forward earnings
Bandhan Bank 9.9% 52 6x of Book value
HDFC CAPITAL ADVISORS 100.0% 2 15x forward earnings
HDFC CREDILA 100.0% 6 15x forward earnings
HDFC Property Ventures 80.5% 2 15x forward earnings
Total subs/associates (B) @18% discount 1,510
Fair value (A+B) 3,322
Current market price 2,712
Upside (%) 22
Contribution of subs to total (%) 45.47
Source: PL

November 1, 2021 6
 HDFC

HDFC core multiple to sustain at higher end

P/ABV 3 yr avg. avg. + 1 SD avg. - 1 SD

11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0

Jun-19

Jun-20

Jun-21
Feb-19

Feb-20

Feb-21
Oct-18

Apr-19

Oct-19

Apr-20

Oct-20

Apr-21

Oct-21
Dec-18

Dec-19

Dec-20
Aug-18

Aug-19

Aug-20

Aug-21
Source: Company, Bloomberg, PL

November 1, 2021 7
 HDFC
Income Statement (Rs. m) Quarterly Financials (Rs. m)
Y/e Mar FY21 FY22E FY23E FY24E Y/e Mar Q3FY21 Q4FY21 Q1FY22 Q2FY22
Int. Inc. / Opt. Inc. 435,847 508,496 610,976 721,480 Int. Inc. / Operating Inc. 108,374 105,930 106,471 106,831
Interest Expenses 286,148 333,991 416,994 498,456 Income from securitization - - - -
Net interest income 149,700 174,505 193,982 223,024 Interest Expenses 68,327 65,660 65,219 65,735
Growth(%) 17.4 16.6 11.2 15.0 Net Interest Income 40,047 40,271 41,252 41,096
Non-interest income 45,911 49,073 51,025 58,430 Growth (%) 24.6 13.7 23.7 14.1
Growth(%) (69.4) 6.9 4.0 14.5 Non-Interest Income 8,790 11,145 10,161 15,433
Net operating income 195,611 223,578 245,007 281,455 Net Operating Income 48,837 51,416 51,412 56,529
Expenditures Growth (%) (61.0) 19.0 (1.2) 30.4
Employees 9,141 10,512 12,615 15,138 Operating expenditure 4,855 4,621 5,130 4,912
Other Expenses 7,251 9,427 10,811 12,410 PPP 43,466 46,429 45,906 51,231
Depreciation 1,588 316 376 448 Growth (%) 22.8 (15.2) 8.8 7.4
Operating Expenses 17,980 20,255 23,802 27,995 Provision 5,940 7,190 6,860 4,520
PPP 177,631 203,324 221,205 253,460 Exchange Gain / (Loss) - - - -
Growth(%) (32.4) 14.5 8.8 14.6 Profit before tax 37,526 39,239 39,046 46,711
Provisions 29,480 20,969 15,224 12,852 Tax 8,267 7,441 9,039 8,906
Profit Before Tax 148,151 182,355 205,982 240,607 Prov. for deferred tax liability - - - -
Tax 27,878 45,899 51,846 60,561 Effective Tax Rate 22.0 19.0 23.1 19.1
Effective Tax rate(%) 18.8 25.2 25.2 25.2 PAT 29,258 31,798 30,007 37,805
PAT 120,273 136,456 154,136 180,046 Growth (65) 42 (2) 32
Growth(%) (32.3) 13.5 13.0 16.8
AUM 4,839,19 4,982,98 5,004,90 5,207,98
Balance Sheet (Rs. m) 0 0 0 0
YoY growth (%) 9.6 10.5 7.5 9.6
Y/e Mar FY21 FY22E FY23E FY24E
Source of funds Borrowing 4,339,17 4,413,65 4,518,69 4,627,37
Equity 3,608 3,608 3,608 3,608 0 0 1 0

Reserves and Surplus 1,084,219 1,332,290 1,414,257 1,522,135 YoY growth (%) 9.5 5.3 4.6 9.9

Networth 1,087,827 1,335,899 1,417,866 1,525,743 Key Ratios

Growth (%) 26.3 22.8 6.1 7.6 Y/e Mar FY21 FY22E FY23E FY24E
Loan funds 4,413,650 5,015,234 5,883,332 6,840,406
CMP (Rs) 2,888 2,888 2,888 2,888
Growth (%) 5.3 13.6 17.3 16.3
EPS (Rs) 77.8 75.6 85.4 99.8
Deferred Tax Liability - - - -
Book value (Rs) 350.3 487.8 533.2 593.0
Other Current Liabilities 171,996 334,817 559,613 872,726
Adj. BV(Rs) 319.4 445.4 499.8 554.1
Other Liabilities 2,513 10,416 11,186 928
P/E(x) 37.1 38.2 33.8 28.9
Total Liabilities 5,675,986 6,696,366 7,871,998 9,239,804
P/BV(x) 8.2 5.9 5.4 4.9
Application of funds
P/ABV(x) 9.0 6.5 5.8 5.2
Net fixed assets 21,965 26,476 31,507 37,493
DPS (Rs) 25.0 56.0 40.0 40.0
Advances 4,852,943 5,631,515 6,547,592 7,732,818
Dividend Payout Ratio(%) 37.5 74.0 46.8 40.1
Growth (%) 10.3 16.0 16.3 18.1
Dividend Yield(%) 0.9 1.9 1.4 1.4
Investments 686,368 831,388 1,080,931 1,139,903
Current Assets 41,234 124,071 122,360 232,268 Asset Quality

Net current assets (130,762) (210,745) (437,253) (640,459) Y/e Mar FY21 FY22E FY23E FY24E

Other Assets 73,477 82,915 89,607 97,322 Gross NPAs(Rs m) 95,043 111,504 98,214 108,259
Total Assets 5,675,986 6,696,365 7,871,997 9,239,803 Net NPA(Rs m) 55,750 76,504 60,214 70,259
Growth (%) 8.3 18.0 17.6 17.4 Gross NPAs to Gross Adv.(%) 2.0 2.0 1.5 1.4
Business Mix Net NPAs to net Adv.(%) 1.1 1.4 0.9 0.9
AUM 4,852,943 5,631,515 6,547,592 7,732,818 NPA coverage(%) 41.3 31.4 38.7 35.1
Growth (%) 10.3 16.0 16.3 18.1
Du-Pont as a % of AUM
On Balance Sheet - - - -
Y/e Mar FY21 FY22E FY23E FY24E
% of AUM - - - -
NII 2.7 2.8 2.7 2.6
Off Balance Sheet - - - -
NII INCI. Securitization 2.7 2.8 2.7 2.6
% of AUM - - - -
Total income 3.6 3.6 3.4 3.3
Profitability & Capital (%) Operating Expenses 0.3 0.3 0.3 0.3
Y/e Mar FY21 FY22E FY23E FY24E PPOP 3.3 3.3 3.0 3.0
NIM 3.2 3.3 3.2 3.1 Total Provisions 0.5 0.3 0.2 0.2
ROAA 2.5 2.2 2.1 2.1 RoAA 2.5 2.2 2.1 2.1
ROAE 36.8 23.9 20.9 21.6 Avg. Assets/Avg. net worth 14.6 10.8 9.9 10.3
Source: Company Data, PL Research RoAE 36.8 23.9 20.9 21.6
Source: Company Data, PL Research

November 1, 2021 8
 HDFC

Price Chart Recommendation History

(Rs)
No. Date Rating TP (Rs.) Share Price (Rs.)
2925
1 5-Oct-21 BUY 3,214 2,741
2 2-Aug-21 BUY 3,028 2,462
2569
3 6-Jul-21 BUY 3,087 2,495
2212 4 7-May-21 BUY 3,094 2,497
5 6-Apr-21 BUY 3,093 2,446
1856
6 2-Feb-21 BUY 3,094 2,659
1500 7 11-Jan-21 Accumulate 2,895 2,653
May - 19
Nov - 18

Oct - 20
Oct - 19

Oct - 21
Apr - 20

Apr - 21
8 2-Nov-20 Accumulate 2,185 2,041

Analyst Coverage Universe

Sr. No. Company Name Rating TP (Rs) Share Price (Rs)
1 Bajaj Finance BUY 9,092 7,856
2 Cholamandalam Investment and Finance Company BUY 739 594
3 HDFC BUY 3,214 2,741
4 L&T Finance Holdings Reduce 80 85
5 LIC Housing Finance Reduce 387 409
6 Mahindra & Mahindra Financial Services Reduce 167 186
7 Manappuram Finance Hold 199 184
8 Muthoot Finance BUY 1,780 1,521
9 SBI Cards and Payment Services Accumulate 1,199 1,126
10 Shriram Transport Finance Accumulate 1,532 1,449

PL’s Recommendation Nomenclature (Absolute Performance)

Buy : > 15%
Accumulate : 5% to 15%
Hold : +5% to -5%
Reduce : -5% to -15%
Sell : < -15%
Not Rated (NR) : No specific call on the stock
Under Review (UR) : Rating likely to change shortly

November 1, 2021 9
 HDFC

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