HDFC’s profit fell 4.7% to Rs 3,052 crore for the June quarter. HDFC said tha adjusted net interest income stood at Rs 3,609 crore, up 17%.
Antique, Edelweiss and Emkay maintained buy while Haitong, Macquarie, CLSA and Credit Suisse maintained outperform. Morgan Stanley is overweight on the stock while IDBI Capital has an accumulate rating.
Morgan Stanley said stronger revenues drove better core pre provision operating profit for HDFC. The brokerage is overweight on the stock due to HDFC’s strong balance sheet, near term resilience, stuctural gains, and attractive valuation.
Maintaining buy rating, Edelweiss said HDFC’s relatively safer assets provide comfort. However, margin benefits from lower rates are not likely to accrue, said Edelweiss.
Kotak Institutional Equities said the sharp decline in borrowing cost is a positive.
Even as near-term NII will likely remain muted and overhang of slippages remains high, HDFC’s large provisioning buffers put it in a much more comfortable position versus peers to sail through these challenging times, said Kotak.