Top Broking House Assigns "Buy" On This Large Cap NBFC Stock, Sees 20% Potential Upside

Housing Development Finance Corporation Ltd (HDFC), a leading NBFC operating in India, gets a "Buy" call from the Nirmal Bang. The brokerage in its report published on 20 February 2023 has assigned a target price of Rs 3,159/share to the stock. With the assigned target price, the brokerage sees up to 20% gain in the share price from its current level. HDFC is a large-cap NBFC with presence in banking, life and general insurance, asset management, venture capital, realty, education, deposits and education loans. It has a market capitalisation of Rs 4,84,860 crore. Check the Details below:

HDFC's Stock outlook & Returns

The stock of HDFC is currently trading at Rs 2,651.50 apiece, 0.545 down from its previous close. Today, it opened at Rs 2,654.05/share, while its previous close was Rs 2,666.40/share. Its 52 week low is Rs 2,026/share. It is currently trading 9.62% away from its 52 week high of Rs 2,933.80/share.

It has fallen 1.88% in the last one week, and 2.31% in the last 1 month, respectively. However, in the last 1 year, it gained 8.12%. In the last 3 years it gained 11.97% and in the past 5 years it gained 45.84%, respectively.

Management meet note

Nirmal Bang said, "We recently hosted the management of HDFC Ltd., represented by Mr. Conrad D'souza, Member of the Executive Management & Chief Investor Relations Officer as a part of our week long investors' conference. The management indicated that the overall business environment continues to remain healthy, driven by both Retail as well as Wholesale segments. Within the Non-retail segment (excluding the run-down portfolio), growth remains healthy. On the margin front, the management stated that the same has largely bottomed out as the lead-lag effect of the rate hikes is over and expects margins to normalize going forward. The company has some exposure to a large conglomerate, largely towards their residential projects and does not expect any asset quality issues from the same.

 

Brokerage assigns "buy" with a target price of Rs 3,159/share

The brokerage said, "We continue to remain positive on HDFC on the back of its stable market share in a growing Housing Finance sector and its ability to deliver 2%+ ROAs. We maintain our BUY rating on HDFC with a target price (TP) of Rs3,159 (SOTP-based)."

 

Disclaimer

The stock has been picked from the brokerage report of Nirmal Bang. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.