By Aditya Raghunath
Investing.com -- India’s largest mortgage lender, Housing Development Finance Corporation Ltd (NS:HDFC) (HDFC) is scheduled to release its Q1 FY22 earnings report on Aug 2.
Analysts have forecasted growth of 22% in net interest income (NII) for the June 2021 quarter for HDFC. The high NII growth is likely due to a low base compared to the national lockdown for the whole of Q1 FY21.
The company is likely to report a fall in net profit by 5-6% to Rs 2,856 crore for this time period. This is due to a massive drop in investment income and dividend income.
In July, the company had said that it earned Rs 263 crore as profit on sale of investments during Q1 FY22. Its profit on sale of investments in the June 2020 quarter was Rs 1,241 crore. Its dividend income in the June 2021 quarter was Rs 16 crore compared to Rs 298 crore in the June 2020 quarter. HDFC had said this in a quarterly update in July.
However, analysts are bullish on this stock. Jefferies has a price target of Rs 3,300 on HDFC, an upside of over 35% from its July 30 closing price of Rs 2,442.55. The company’s share price is down 4.91% in 2021.