On May 5, Housing Development Finance Corporation (HDFC) posted higher net profit in the March quarter, but the stock traded 5% down on MSCI implementation post-merger.

HDFC reported a 20% rise in stand-alone net profit to Rs 4,425.50 crore in the March quarter, up from Rs 3,700.32 crore in the same period last year. Net interest income (NII) stood at Rs 5,321 crore compared to Rs 4,601 crore in the previous year, an increase of 16%.

HDFC is anticipated to post a 4.4% YoY growth in net profit at Rs 3,854 crore. NII rose nearly 5% YoY to Rs 4,752 crore.

During the analyst’s conference, HDFC said the Liquidity Coverage Ratio (LCR) is at 128%. The management mentioned that LCR, as per RBI’s norms for banks, is around 70% to 75%.

Macquarie has shown an “outperform” rating on the stock with a target price of Rs 3,060. It said that the March quarter was stable for HDFC, while the focus would be on the HDFC Bank merger.

Motilal Oswal Financial Services expects HDFC’s margin to be broadly stable over FY24 and FY25. It increased its EPS estimates for FY25 by 2% amid lower credit costs.

At 10:10 am, the stock traded at Rs 1,650.20 on the NSE fell 5% from the earlier close.