HDFC Q4 preview: PAT may jump up to 50% YoY amid decline in provisions

Global brokerage HSBC has upgraded HDFC to 'Buy' given its dominant market position and execution capabilities which, the brokerage says, should allow it to continue gaining market share

HDFC Q4 preview: Backed by strong individual loan book, healthy net interest income (NII), and fewer provisions, Street expects mortgage lender HDFC to report nearly 50 per cent year-on-year (YoY) increase in net profit for March quarter of FY21 (Q4FY21) on May 7.
 

"We foresee improvement across earnings drivers (AUM growth, net interest margin and credit costs) for HDFC over FY22-23 spurring a significant rise in ROA and ROE (high teens). We expect 16 per cent AUM CAGR, over 3 per cent NIM sustenance and less than 2 per cent NPA levels," notes Shweta Daptardar, analyst at Prabhudas Lilladher.
 

Global