HDFC hits 15-month low on heavy volumes

Post Q3FY16 results, the stock was down 11% against 3.7% decline in the benchmark index since January 27.

Shares of Housing Development Finance Corporation (HDFC) has dipped 1.7% to Rs 1,040, its lowest level since November 2014 on BSE, on back of heavy volumes.

Around 1.38 million equity shares representing 0.09% of total equity of HDFC changed hands through block deal in early morning trade, the BSE data shows.

The stock of India's largest mortgage lender has underperformed the market by falling 18% thus far in 2016 as compared to 10% decline in the S&P BSE Sensex.

Since January 27, post October-December, 2015 (Q3FY16) results, the stock dipped 11% against 3.7% decline in the benchmark index.

HDFC has strong asset quality, with gross non-performing assets (NPAs) of 0.72% as of December 31, 2015 (0.67% as on March 31, 2015). NPAs in the individual portfolio stood at 0.54%, while gross NPAs in the non-individual portfolio stood at 1.12%.

CRISIL, a rating agency, believes that HDFC will maintain a robust credit risk profile over the medium term, backed by its strong asset quality, and its healthy capitalization and profitability.

HDFC’s strong franchise and fundamentals will enable the company to maintain its competitive position, supporting its present ratings, CRISIL said while assigning rating of non-convertible debenture (NCD) issue.

Nevertheless, HDFC’s sizeable exposure to the builder and corporate segments will remain a sensitivity factor. The outlook may be revised to ‘Negative’ if HDFC’s asset quality or profitability weakens significantly, the rating agency said in report dated February 3, 2016.

At 12:11 PM, the stock was down 1% at Rs 1,046 on the BSE. A combined 2.95 million shares changed hands on the counter on the BSE and NSE.