HDFC Q2 preview: Stake sale in Gruh Fin to support PAT, asset quality eyed

According to estimates by Narnolia Securities, the sale of GRUH Finance is expected to have generated around Rs 1,700 crore as at Q2FY20, providing "sufficient liquidity" to the HFC.

Supported by gains from stake sale in Gruh Finance, leading housing finance company (HFC) HDFC is likely to post a net profit up to Rs 3,628 crore in September quarter of FY20 (Q2FY20). It, however, may see a decline in credit growth due to slowdown in the real estate sector, according to analysts. HDFC is scheduled to announce its Q2FY20 results on Monday, November 4.

Analysts at ICICI Securities, for instance, estimate that other income of Rs 3,421 crore, including gain of Rs 1,632 crore from stake sale in Gruh Finance and Rs 1,074 crore dividend from subsidiary, could lead to