HDFC stock could see some re-rating following encouraging Q3 show

Strong demand for home loans and improved collection efficiency augur well

Mortgage major HDFC registered results which were in line with expectations, or better, for Q3, 2021-22. At standalone level, profit after tax stood at Rs 3,261 crore compared to Rs 2,926 crore in corresponding Q3, 2020-21, and versus Rs 3,780 crore for Q2, 2021-22.

PAT was aided by lower tax expenses at Rs 787.5 crore as against Rs 826.7 crore year-on-year (YoY). The net interest income grew 7 per cent YoY to Rs 4,284 crore, better than the Street's estimate of Rs 4,107 crore. The spread was 2.26 per cent over the nine months, with an average net interest margin