HDFC share rises over 2% ahead of Q2 earnings

HDFC share was trading higher ahead  of Q2 earnings today. HDFC stock gained 2.30% to Rs 1967 against previous close of Rs 1922.75 on BSE. The stock has gained after 4 days of consecutive fall. The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. 

During last one year, the share has lost 8.39% and fallen 19.21% since the beginning of this year.

In a month, the stock has gained 9%.

Total 0.83 lakh shares of the firm changed hands amounting to turnover of Rs 16.25 crore. Market cap of the firm rose to Rs 3.50 lakh crore.

Nirmal Bang expects HDFC's net profit to fall 43 per cent on a yearly basis to Rs 2,253.9 crore. The brokerage expects net interest income (NII) to rise by 12 per cent YoY and 4 per cent QoQ to Rs 3,346.4 crore in Q2.

Loans and advances are seen rising nearly 11 per cent YoY (2.5 per cent QoQ) to Rs 4.65 lakh crore, deposits are pegged at Rs 4.4 lakh crore, gaining 13 per cent YoY (2 per cent QoQ). Credit cost for the mortgage lender is seen falling 46 bps sequentially and 12pbps on a yearly basis to 0.6 per cent, while NIM is estimated at 2.9 per cent.

Kotak Institutional Equities sees 12 per cent YoY rise in AUM growth to Rs 5.5 lakh crore and 9 bps yearly expansion of calculated NIM to 2.43 per cent, indicating decline in the cost of funds.

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"We expect retail loan book to remain flat sequentially due to weak new business momentum in the first two months of the quarter, and lower prepayments/balance transfers. Therefore, non-individual loan book will likely deliver 8 per cent QoQ growth on account of lending to high-rated corporate," Kotak Institutional Equities said.