HDFC at two-year high ahead of Q1 results

Housing Development Finance Corporation (HDFC) is trading 2 per cent higher at Rs 3,128 ahead of first quarter results today.
 
According to Prabhudas Liladher research, HDFC’s approval and disbursals are expected to grow 23.3 per cent and 22.4 per cent on year-on-year (y-o-y) basis, driven by strong housing demand, but decline sharply on a sequential basis due to a high base of previous quarter.
 
“Spreads are likely to come down from very high levels of 2.6 per cent reported in Q4FY10 to 2.1-2.3 per cent and non-interest income to moderate, excluding any profit from sale of investments. The earnings will grow by 35.8 per cent YoY, but decline 17.2 per cent QoQ due to higher base of the previous quarter&" according to research report.
 
The housing finance company had posted 26 per cent jump in net profit, despite of 8 per cent drop in total income during Q4FY10.
 
The stock currently trading at more than two-year high and has appreciated by almost 8 per cent in last five trading days.