NEW DELHI: Shares of HDFC hit their fresh 52-week high level in Monday's session ahead of its third quarter results. Analysts believe loan growth and uptick in corporate loans, the impact of RERA on real estate demand and the movement in spreads and margins on individual loans), besides asset quality trend will be keenly followed.
At 10.24 am, the scrip was trading 2.12 per cent higher at Rs 1,942.90 on BSE. The stock hit a high of Rs 1,945.70 earlier in the trade.
"We factor in investment gains from HDFC Life IPO and partly use the gains to make additional contingent provisions, but on core operations we expect better loan growth and stable spreads," Prabhudas Lilladher said in a note.
Brokerage Motilal Oswal Secruities expects the mortgage lender to report a profit of Rs 4,500 crore in the December quarter.
However, adjusted for one off, it is expected to grow 14 per cent YoY to Rs 1950 crore, the brokerage said. The brokerage is factoring in Rs 5,250 crore of capital gains on HDFC standard life stake sale via IPO, assuming 21.4 per cent tax rate on the same.
"Asset quality has remained healthy over past several quarters, and the trend is likely to continue. Asset quality in the corporate loan book would be a key monitorable. We estimate provisions at Rs 1,680 crore, of which Rs 1,580 crore is attributable to one-time provisions from gain on sale of investments," it said.