HDFC jumps 4.4% from day's low; analysts see up to 26% upside post Q3 nos

CLSA has raised its target price from Rs 2,850 on the back of strong beat on NII, improvement in net interest margin by 20 bps QoQ, and adequate provisioning of 1.4 per cent of AUM

HDFC shares bounced back 4.4 per cent from its intra-day low of Rs 2,618 apiece on the BSE on Wednesday as analysts remain positive on the housing financier's outlook despite a 65 per cent year-on-year (YoY) decline in net profit at Rs 2,925.8 crore for the quarter ended December 2020. Its PAT stood at Rs 8,372 in the year-ago period (Q3FY20).

"HDFC profit declined due to last year one time gain of Rs 9,019 crore. During the previous year, GRUH Finance, an associate company, was merged with Bandhan Bank effective October 17, 2019. The Corporation recorded a fair value gain