While shares of HDFC Bank cracked 5.9 per cent (Rs 1,625.35), those of HDFC Ltd plunged 5.6 per cent (Rs 2,701). Both these counters were the top draggers on the benchmark indices, which ended 1 per cent down.
At present, HDFC’s weight is 6.74 per cent in MSCI India index which may reduce to 6.5 per cent post the merger.
“We had estimated the foreign room for the merged entity to be around 18 per cent which is above (the minimum requirement of) 15 per cent. However, as per the current methodology, the weighting of the merged entity would be again reduced in the next quarterly index reviews if the foreign room would have come below 15 per cent,” Nuvama Alternative & Quantitative Research’s report said.
Q4FY23 results of HDFC and HDFC Bank
In the March quarter of FY23, HDFC Bank reported a 21 per cent year-on-year (YoY) rise in consolidated net profit to Rs 12,594.5 crore for the quarter ended March 31. It clocked a 20.3 per cent YoY growth in consolidated net revenue to Rs 34,552.8 crore during the quarter, against Rs 28,733.9 crore recorded during the quarter ended March 31, 2022. Net interest income (NII), meanwhile, expanded by 23.7 per cent to Rs 23,351 crore YoY.
Global brokerage Macquarie has assigned an ‘outperform’ rating to HDFC with a target price of Rs 3,060, while those at Nomura have given a ‘Buy’ rating and a target price of Rs 3,100.
“The management shared that it has not witnessed any perceptible change in demand for mortgages, despite the high interest rates and that a large proportion of customers have seen only their tenor increase rather than any EMI increase. HDFC achieved its highest ever monthly disbursements in Mar’23 and expects this positive momentum to continue throughout FY24. Commentary on the existing mortgage demand has been divergent across the different lenders in the mortgage ecosystem,” it said.