Published on 15/09/2020 1:10:03 PM | Source: Angel Broking Ltd

Quote on Q1FY21 Result_ HUDCO By Mr. Jaikishan Parmar, Angel Broking Ltd

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Below is the Quote on Q1FY21 Result_ HUDCO By Mr. Jaikishan Parmar- Sr. Equity Research Analyst, Angel Broking Ltd

“For Q1FY21 HUDCO reports a subdued set of numbers owing to elevated provision. AUM grew 3%/5% YoY and QoQ, HOwever NII declined by 4%/17% YoY/QoQ. Which led to compression NIM by 29bps YoY to 2.96%. The yield on advance declined by 70bps and the Cost of funds reduced by 31bps which impacted NIM for the Quarter. Pre Provision dropped by 3% YoY, owing to subdued NII. PAT plunged by 40% YoY primarily owing to elevated provision cost.
GNPA sequentially remained stable and it has 86% provision coverage which is higher compared to peers and considering 96% loan outstanding is to the government agency. HUDCO currently trades at 0.56x of TTM net worth, which is lower compared to the historical average. We believe the stock price to consolidate until a clear picture emerges about asset quality in Q2 and Q3FY21.”


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