HDFC declines on reports of foreign brokerage downgrade

HDFC lost 3.94% to Rs 1,110.45 at 15:18 IST on BSE on media reports that a foreign brokerage has downgraded the stock to sell from neutral.

Meanwhile, the S&P BSE Sensex was down 260.32 points or 1.05% at 24,543.96.

On BSE, so far 1.89 lakh shares were traded in the counter as against average daily volume of 1.44 lakh shares in the past one quarter. The stock hit a high of Rs 1,149 and a low of Rs 1,109 so far during the day. The stock had hit a 52-week low of Rs 1,012 on 25 February 2016. The stock had hit a 52-week high of Rs 1,385.75 on 24 March 2015. The stock had underperformed the market over the past one month till 14 March 2016, advancing 6.68% compared with Sensex's 7.91% rise. The scrip had also underperformed the market in past one quarter, sliding 2.66% as against Sensex's 1.38% fall.

The large-cap company has equity capital of Rs 315.87 crore. Face value per share is Rs 2.

The foreign brokerage reportedly said that structural changes may dampen HDFC's profitability and its core business is likely to be pressured. HDFC may now have structurally lower growth and core return on assets (ROAs) will decline further, the foreign brokerage reportedly said.

On consolidated basis, HDFC's net profit rose 11% to Rs 2419 crore on 3% growth in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.

HDFC is India's first retail housing finance company and is currently one of the largest originators of housing loans in the country.

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