HDFC share price jumps over 2%, hits fresh 52-week high as loan disbursements up 26% in Dec quarter

By: |
Updated: January 05, 2021 4:13 PM

Housing Development Finance Corporation (HDFC) share price jumped over 3 per cent to make a fresh 52-week high of Rs 2,658.55 apiece intraday on BSE today

hdfc, hdfc share priceHDFC Ltd also said that the individual loan business continued to see improvements during the December quarter

Housing Development Finance Corporation (HDFC) share price jumped over 3 per cent to make a fresh 52-week high of Rs 2,658.55 apiece intraday on BSE today. In a BSE filing, HDFC Ltd said that its disbursements in the individual loan category have grown 26 per cent on-year during the third quarter ended December 2020. While for the nine months ended December 31, 2020, individual loan disbursements stood at 86 per cent of the levels in the corresponding period of the previous year. HDFC shares have rallied over 80 per cent from the March low of Rs 1,473.10 apiece. Domestic research and brokerage firm Motilal Oswal Financial Services said that the strong disbursement trend in the festival season sustained throughout the quarter.

HDFC Ltd also said that the individual loan business continued to see improvements during the December quarter. In the last two quarters, loan assignments were muted, but they are back normal levels in the third quarter of the current fiscal. The brokerage firm expects HDFC to report an upfront assignment income of Rs 2.5–3 billion from the sell-down.

According to the exchange filing, the profit on sale of investments stood at Rs 157 crore during the December quarter, which was on account of the sale of 25.48 lakh equity shares of HDFC Life Insurance Company Limited (HDFC Life). HDFC’s shareholding in HDFC Life now stands at 49.99 per cent, which is within the RBI’s mandated regulatory limit of 50 per cent. The company would incur an ESOP expense of Rs 147 crore in the third quarter. The dividend income was minimal, given the stance of its subsidiaries and associates to conserve capital.

HDFC remains one of the preferred picks of Motilal Oswal Financial Services, due to the company’s ability to gain profitable market share despite significant competitive pressures. It said that contrary to initial expectations, the real estate market has seen a swift turnaround. “With incremental cost of funds from the capital markets at 5–5.5 per cent, the company would be able to manage spreads despite the sharp cut in home loan yield,” it added. HDFC has built-in large provision buffers to help it sustain a spike in NPLs in the coming quarters. “We expect the company to deliver core RoE of 12–14% over the medium term,” the brokerage firm said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Gold Price Today, 19 Oct 2021: MCX gold to trade in Rs 47100-47500 range; Nov-Dec bullish for yellow metal
2BSE, NSE trading open: SGX Nifty up; settlement holiday, Q2 results, global cues could guide markets
3Petrol and diesel price October 19: Rates constant at all-time highs; Check price in Delhi, Mumbai here