NSEI:HDFC

Stock Analysis Report

Housing Development Finance

Executive Summary

Housing Development Finance Corporation Limited provides housing finance to individuals and corporate customers in India.


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Housing Development Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HDFC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

HDFC

-1.6%

IN Mortgage

-1.4%

IN Market


1 Year Return

24.2%

HDFC

10.2%

IN Mortgage

6.4%

IN Market

Return vs Industry: HDFC exceeded the Indian Mortgage industry which returned 10.2% over the past year.

Return vs Market: HDFC exceeded the Indian Market which returned 6.4% over the past year.


Shareholder returns

HDFCIndustryMarket
7 Day-0.7%-1.6%-1.4%
30 Day-6.0%-5.5%-3.3%
90 Day-1.4%-0.08%0.4%
1 Year25.4%24.2%11.7%10.2%8.4%6.4%
3 Year73.3%68.1%39.7%33.8%20.9%14.1%
5 Year77.9%68.3%66.9%55.4%30.7%18.5%

Price Volatility Vs. Market

How volatile is Housing Development Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Housing Development Finance undervalued compared to its fair value and its price relative to the market?

18.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HDFC (₹2302.6) is trading above our estimate of fair value (₹514.01)

Significantly Below Fair Value: HDFC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HDFC is poor value based on its PE Ratio (18.2x) compared to the Mortgage industry average (11.9x).

PE vs Market: HDFC is poor value based on its PE Ratio (18.2x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: HDFC is poor value based on its PEG Ratio (10.3x)


Price to Book Ratio

PB vs Industry: HDFC is overvalued based on its PB Ratio (3.2x) compared to the IN Mortgage industry average (1x).


Next Steps

Future Growth

How is Housing Development Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDFC's forecast earnings growth (1.8% per year) is below the savings rate (6.5%).

Earnings vs Market: HDFC's earnings (1.8% per year) are forecast to grow slower than the Indian market (20.4% per year).

High Growth Earnings: HDFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: HDFC's revenue is expected to decline over the next 3 years (-59.9% per year).

High Growth Revenue: HDFC's revenue is forecast to decline over the next 3 years (-59.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDFC's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Housing Development Finance performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDFC has high quality earnings.

Growing Profit Margin: HDFC's current net profit margins (28.4%) are higher than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: HDFC's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: HDFC's earnings growth over the past year (90.7%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: HDFC earnings growth over the past year (90.7%) exceeded the Mortgage industry 16.1%.


Return on Equity

High ROE: HDFC's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Housing Development Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HDFC has a low level of unsold assets or inventory.

Debt Coverage by Assets: HDFC's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: HDFC's level of assets compared to its equity is low.

Allowance for Bad Loans: HDFC has a sufficient allowance for bad loans.

Low Risk Liabilities: HDFC's liabilities are made up of primarily higher risk sources of funding.

Loan Level: HDFC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HDFC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: HDFC has an appropriate level of bad loans (1.22%)


Next Steps

Dividend

What is Housing Development Finance's current dividend yield, its reliability and sustainability?

0.91%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.6%industryaverage1.2%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: HDFC's dividend (0.91%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: HDFC's dividend (0.91%) is low compared to the top 25% of dividend payers in the Indian market (2.61%).


Stability and Growth of Payments

Stable Dividend: HDFC's dividend payments have been volatile in the past 10 years.

Growing Dividend: HDFC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.6%), HDFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HDFC's dividends in 3 years are forecast to be well covered by earnings (20% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.1yrs

Average management tenure


CEO

Keki Mistry (64yo)

20.1yrs

Tenure

₹136,241,378

Compensation

Mr. Keki Minoo Mistry, CPA serves as Associate Director of HDFC Asset Management Company Ltd. Mr. Mistry has been the Chief Executive Officer of Housing Development Finance Corporation Limited (a/k/a HDFC  ...


CEO Compensation Analysis

Compensation vs Market: Keki's total compensation ($USD1.89M) is above average for companies of similar size in the Indian market ($USD1.10M).

Compensation vs Earnings: Keki's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Keki Mistry
Vice Chairman & CEO20.1yrs₹136.24m0.033% 1.3b
Renu Karnad
MD & Executive Director20.1yrs₹123.56m0.13% 5.3b
Vedanthachari Rangan
CFO & Executive Director10.1yrs₹86.96m0.024% 946.3m
Ajay Agarwal
Company Secretary & Compliance Officer4.9yrs₹3.37m0.0027% 109.2m
T. Ravishankar
General Manager of Accounts0yrsno data0.0051% 202.4m
Joseph Conrad D'Souza
Chief Investor Relations Officer0yrsno data0.068% 2.7b
Sudhir Jha
Senior General Manager of Corporate Legal0yrsno data0.0024% 94.5m
Mahesh Shah
General Manager of Public Relations0yrsno data0.0030% 119.1m
Praveen Bhalla
Senior General Manager of Human Resources0yrsno data0.0014% 54.4m
Sonal Modi
Senior GM & Regional Business Head of Maharashtra0yrsno data0.029% 1.2b

10.1yrs

Average Tenure

61.5yo

Average Age

Experienced Management: HDFC's management team is seasoned and experienced (10.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keki Mistry
Vice Chairman & CEO20.1yrs₹136.24m0.033% 1.3b
Renu Karnad
MD & Executive Director20.1yrs₹123.56m0.13% 5.3b
Vedanthachari Rangan
CFO & Executive Director10.1yrs₹86.96m0.024% 946.3m
Deepak Parekh
Non Executive Chairman27.1yrs₹24.90m0.061% 2.4b
Jamshed Irani
Independent Director12.1yrs₹4.90m0.0038% 149.3m
Jalaj Dani
Independent Director1.8yrs₹4.92mno data
Nasser Munjee
Independent Director27yrs₹5.00mno data
Ireena Vittal
Independent Director1.1yrs₹802.15k0.00017% 6.7m
Bhaskar Ghosh
Independent Director1.4yrs₹2.89mno data
Upendra Sinha
Independent Director1.8yrs₹4.32mno data

11.1yrs

Average Tenure

65yo

Average Age

Experienced Board: HDFC's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HDFC insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

Housing Development Finance Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Housing Development Finance Corporation Limited
  • Ticker: HDFC
  • Exchange: NSEI
  • Founded: 1977
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹3.969t
  • Shares outstanding: 1.73b
  • Website: https://www.hdfc.com

Number of Employees


Location

  • Housing Development Finance Corporation Limited
  • HDFC House
  • H T Parekh Marg
  • Mumbai
  • Maharashtra
  • 400020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500010BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1993
HDFCNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1993

Biography

Housing Development Finance Corporation Limited provides housing finance to individuals and corporate customers in India. The company accepts fixed deposits, such as monthly income plans, non-cumulative interest plans, annual income plans, and cumulative options; and trust deposits. It offers loans for the purchase/construction of houses; home improvement and extension, plot, and top up loans; loans to agriculturists, planters, horticulturists, and dairy farmers; loans for the salaried/self-employed individuals; loans for non-resident Indians; loans against property; and loans for non-residential premises and commercial plots, as well as education loans. In addition, the company provides cross-selling products and services; investment advisory services; life insurance products; general insurance products, including motor, health, travel, crop, home, personal accident, property, marine, aviation, and liability insurance; venture capital funds; asset management services comprising portfolio management, mutual fund, and property investment management; and other services consisting of project management, investment consultancy, and property related services. It operates through a network of 546 outlets; and 3 representative offices in Dubai, London, and Singapore. The company was founded in 1977 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 12:58
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.