NEW DELHI: Foreign and domestic analysts gave a thumbs up to the December quarter earnings report of HDFC and said the numbers have reaffirmed the strength of its business model and the growth outlook remains intact.
Most of the analysts retained their bullish ratings and also maintained the target price of the stock with potential upside up to 24 per cent from its last closing price.
CLSA analysts Adarsh Parasrampuria and Mohit Surana said the mortgage lender’s third quarter performance was strong with a big beat on net interest income that increased by 26 per cent year-on-year.
“HDFC’s margins improved by 20 bps QoQ and 30 bps from June quarter lows. Near term margin performance should continue as RBI intends to keep system liquidity in surplus while there are strong incremental mortgage spreads in spite of the rate cut in mortgages,” the duo said.