While the share price of HDFC has reacted with a strong upside to the Q4 numbers, however, the share prices of Hero MotoCorp and TVS Motor are yet to react to the financial results and will do so on Friday.
Here’s what investors need to know!
HDFC:
In Q4 FY23, the housing finance giant reports 20% growth in net profit 4,425.50 crore as against 3,700.32 crore in the same quarter of the previous fiscal.
HDFC share price closed on BSE After touching a 52-week high of 2862.35, it gained 2.64%. 2867 each.
As on March 31, 2023, the assets under management were 7,23,988 crore as against 6,53,902 crore in the previous year. While personal loans comprised 83% of the AUM.
Further, as of March 2023, the outstanding amount in respect of sold personal loans was 1,02,071 crores. HDFC continues to service these loans.
On the performance, Shreyansh Shah, Research Analyst, STOXBOX said, “HDFC reported strong numbers in Q4FY23, the company crossed Rs 7.2 lakh crore AUM. The company indicated that the underlying demand for home loans remained strong with growth . Home loans are mainly seen in middle income group and high end properties.”
While Sharekhan by Rahul Malani, Deputy VP – Research, BNP Paribas said, “HDFC Ltd outperformed in Q4FY23 led by strong core operating performance. Overall AUM growth led by non-individual book both YoY as well as QoQ.” Moderated on. Some non-personal book. -In lieu of impending merger with HDFC Bank, personal exposure has been mitigated by the corporation to ensure compliance with banking norms.
However, Malani said, “Personal loans grew at a healthy pace of 17% YoY. NIM improved by 21 bps QoQ to 2.99%, which was a significant positive surprise. Asset quality remained stable and improved sequentially.”
In ICICI Direct’s view, HDFC’s demand for personal loans continues to decelerate, though momentum still remains healthy. The growth outlook looks encouraging, however, mergers and integrations of the housing business are yet to be seen.
Gaurav Jani – Research Analyst, Prabhudas Lilladher highlights that HDFC share price is currently trading at 2.0x Core ABV on March’25 ABV.
Hero MotoCorp:
The two-wheeler maker beat the estimates by reporting 36.97% growth in standalone net profit for the fourth quarter of FY2023. 858.93 crore, as against PAT of Rs. 627.05 crore in the same period a year ago. consolidated revenue from operations stood at 8,306.78 Crore up 11.92% YoY & 3.43% QoQ.
Hero’s margin expansion and profitable growth in the quarter was driven by a combination of pricing, savings and mix. The company also declared a huge dividend of Rs. 35 per share to its shareholders.
Hero MotoCorp’s share price on BSE closed at Rs. 2,514.05 each up 0.4%.
On this two-wheeler giant, Dhruv Mudraddi, Research Analyst, Stocksbox, said, “Hero MotoCorp reported a strong financial performance in Q4FY23 as revenue grew in low single digits even on lower volumes. The company posted strong growth in EBITDA margin and net profit.” registered strong profits due to a premium product mix. The company’s efforts on cost management and value addition undertaken in the quarter also reflected in their profits. We expect premiumization of existing models and new products already in the pipeline The launch will augur well for the company. We will look for more color from the management on the rural demand side and the outlook for exports in the current macro environment.”
Himanshu Singh – Research Analyst, Prabhudas Lilladher said that “Overall, revenue was in line and margins were supported by inventory, which may reverse in coming quarters.” He has a ‘Buy’ recommendation on Hero MotoCorp stock with a target price of 3,200.
TVS Motor:
TVS reports 49% rise in net profit 410.27 crore for the quarter ending March 2023 as against 274.50 crore in the year-ago period. Consolidated revenue from operations increased by 19.4% 6,604.78 crore as against 5,530.31 crore in Q4 of FY22.
Shares of TVS Motor on BSE closed at Rs. 1,169.85 each, up 1.12%.
According to Dhruv Mudraddi, research analyst at Stocksbox, TVS Motor will report 19% year-on-year growth in revenue in the fourth quarter of FY20, while overall business will remain flat. The company reported strong growth in EBITDA and net profit led by higher sales of scooters and EVs (iQube), which improved the price mix in the quarter. In FY23 as well, the company maintained healthy profitability which is a reflection of improving product mix and strong traction gained by the EV portfolio. Going forward, revival of exports and overall recovery of 2W volumes will be closely watched.
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