HDFC share price SURGES, becomes biggest contributor to Nifty on upside; stock jumps 3.6%

At around 02:35 pm, the counter was trading near the day’s high level: PTI

Trading near the day’s high level, the shares of HDFC jumped over 3.5 per cent to Rs 2550.7 per share on the BSE intraday trade on Tuesday, post reporting healthy first-quarter numbers on Monday.

The stock on Monday opened as the most gainer on the Nifty Index and has also been largely contributing to Nifty50’s surge, as the benchmark hit 16000-mark for the first time in history.

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The country's largest mortgage lender HDFC reported a 31 per cent jump in its consolidated net profit at Rs 5,311 crore in the quarter ended June 2021, as against Rs 4,059 crore in the year-ago same quarter.

While the total income of finance company during Q1FY22 grew by Rs 30,997 crore from Rs 29,959 crore in Q1FY21. HDFC said the demand for housing continues to remain strong and business has reverted to normalcy in the months of June and July 2021 amid the impact of the COVID-19.

“Inclusive of income from assigned loans, the NII for the quarter ended June 30, 2021, stood at Rs 4,414 crore compared to Rs 3,576 crore in the previous year, representing a growth of 23 per cent,” the NBFC said in a statement.

In this regard, Macquarie maintaining an Outperform stance on HDFC has set a target of Rs 2,960 per share. The brokerage says, the asset quality of HDFC remains the biggest plus point and weaker loan growth is due to a decline in the non-individual book. It says the stock is cheap at current valuations.

While Morgan Stanley Morgan Stanley maintains an Overweight rating on HDFC, for a target at Rs 3,160 per share. The brokerage trims FY22/23 EPS estimates by 6/5 per cent respectively. It says stage 2+3 loans appear to have peaked and NII & Core PPoP growth is strong.

At around 02:35 pm, the counter was trading near the day’s high level to Rs 2543.8 per share, up 3.22 per cent on the BSE as compared to a 1.26 per cent rise in the S&P BSE Sensex.

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