After meeting Q2 expectations, HDFC's growth outlook appears healthy

Analysts positive on stock, expect it to trade in the Rs 2,750-Rs 3,000 range

Strong growth in individual mortgages and disbursements drove HDFC’s July-September quarter (Q2) results, which were in line with market expectations. There was some pressure on NIM (net interest margin) due to a lag in the transmission of rates. Asset quality improved slightly, and there’s optimism that NIM shall be better and asset quality will continue to improve in Q3.
 

The mortgage major reported PAT of Rs 4,450 crore, which was up 18 per cent year-on-year (YoY) and 21 per cent quarter-on-quarter (QoQ). The effective tax rate dropped due to higher dividend income. 
 

The pre-provision operating profit (PPOP) of Rs 5,890