NSE Symbol: HDFC | BSE Code: 500010
The HDFC Limited is based in Mumbai, India. The company is a financial conglomerate and provides housing finance primarily in India. Along with which, the company has also expanded into the general insurance, banking as well as venture capital segments.
The HDFC was established as a mortgage company which provides housing finance to both individuals as well as corporate customers for residential as well as commercial construction or purchase. In addition to disbursing loans, the company also provides deposits and education loans.
Mr. Deepak Parekh- Chairman
Since 1978, Mr. Parekh had worked with the company and since 1993 served as Chairman from which he retired in 2009 and now serving as a Non-Executive Chairman. In 1985, Mr. Parekh had served as a whole-time Director in the company. He is an alumnus of the Institute of Chartered Accountants of England and Wales. He has overseen the expansion of the company across different verticals. Along with his duties at HDFC, Mr. Parekh has also served on the boards of some firms such as Glaxo India Ltd, Mahindra & Mahindra, Siemens Ltd, etc. He is a recipient of many awards and has been awarded by the Padma Bhushan through GOI for his contribution to the finance sector.
Mr. Keki Mistry- Vice Chairman and Chief Executive Officer (CEO)
Mr. Mistry works as the current CEO and Vice President of HDFC and has been serving in the company since 1981. In 1993, he was appointed as an Executive Director, and in 1999 he served as the Deputy Managing Director before being designated as Managing Director in 2000. He was appointed as CEO in 2010 and has also served on the boards of several companies such as HDFC ERGO, Sun Pharmaceuticals, HCL Technologies. He is also a Director at the Bombay Stock Exchange and has received numerous awards. Mr. Mistry has completed his Bachelor's in Commerce from Mumbai University, and he is a certified Chartered Accountant from the ICAI.
HDFC began operations in 1977 under the leadership of Mr. H.T. Parekh and in October of 1977 was incorporated as a company. HDFC operates overseas as well and has its offices in London, Singapore, and the Middle East. From disbursing its first home loan in 1980 to becoming one of the largest mortgage providers in the country, HDFC has come a long way. In 1981, the company began issuing deposits and saw an exponential increase in its loan disbursals, crossing Rs.100 crore in 1984. The company has also introduced customer-friendly measures such as the Step-Up Repayment Facility (SURF) to help lower-income groups obtain more substantial loan amounts.
The company entered into strategic partnerships with some firms after the liberalization of the economy, such as the one with Standard Life Assurance Company (UK) for life insurance.
HDFC shares can be bought and sold on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE) during trading hours. For trading, the company can be identified by the following trading codes mentioned below:
HDFC shares can be traded on multiple courses, a few of which have been listed below:
At the start of 2018 HDFC shares were trading at around Rs.1,700. On January 1, the opening price was Rs.1,710 on NSE and BSE. By mid-January, the stocks gained 7% growth driven by fundraising plan of HDFC. The exponential trend was observed for the entire month, and on January 31, 2018, the closing was Rs.1,956 on NSE.
At the start of February, the HDFC stocks commenced trading at around Rs.1,960. However, by the end of the first week, the shares dropped down due to worldwide market turbulence and weak global cues. The stock price was back at Rs.1,800 by mid-February, and it stayed at that level for the rest of the February month. The closing price at the end of the month was Rs.1,808 on NSE.
The company has reported a 25% increase considering the growth in the individual loans segment. Furthermore, approximately 40% of all the home loans approved in this fiscal year were geared towards people belonging to economically weaker sections and low-income group.
Its standalone revenue from operations for the third quarter in fiscal 2018 was reported at Rs.8,695 crore, in contrast to Rs.8,148 crore over the same period last year.
Its standalone net profit after tax increased to Rs.5,670 crore for the third quarter more than the net profit of Rs.1,701.21 crore that the lender has declared in the corresponding quarter of last year. Thus, it is clear that its net profit has been increased thrice as much over a period of 1 year.
As of December 31, 2017, the lender's gross non-performing assets count (NPAs), held at 1.15% of the loan portfolio which was streamlined with the 1.14% reported in the September quarter.
HDFC is one of the premier financial institutions in the country with a market capitalization of more than Rs.3,00,000 crore. The company had reported positive results for the quarter ending December 2017, earning over Rs.8,800 crore in revenue for the period.
With the upward trend in affordable housing projects ruling the nation, followed by the increase in disposable income, demand for housing is likely to increase. As a result, it is estimated that NBFCs will receive a more significant piece of the loan market. In this regard, HDFC is poised to increase overall revenue and posited to see steady growth in the coming quarters.
From a long-term perspective, investing in HDFC is likely to pay steady dividends and reap benefits given the prevalent scarcity of housing in the country. However, it is wise to look at the company's fundamentals before taking a decision.
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