EUR 120.00 For Business Accounts Only

MOrning India (14/May/19): 1. HDFC (AUM growth in line); 2. ITC (Delivers on expectations); 3. Tata Motors; 4. Insurance Tracker; 5. Healthcare; 6. EcoScope; 7. Vodafone Idea; 8. GSK Consumer; 9. Muthoot Financ

MOrning India (14/May/19): 1. HDFC (AUM growth in line); 2. ITC (Delivers on expectations); 3. Tata Motors; 4. Insurance Tracker; 5. Healthcare; 6. EcoScope; 7. Vodafone Idea; 8. GSK Consumer; 9. Muthoot Finance; 10. Oberoi Realty

 

Today’s top research idea

HDFC: AUM growth in line; Margins surprise leads to PAT beat

• HDFC reported PAT of INR28.6b, 24% ahead of our estimate, driven by the better-than-expected spreads performance (+20bp QoQ; NII - 11% beat) and lower opex (5% beat). Asset quality was stable sequentially, with GS3 % at 1.41% (-3bp QoQ)
• AUM rose 4.7% QoQ/15% YoY to INR4.6t - growth continues to be driven by individual loans (+17% YoY to INR3.4t).
• Comparatively, core NII on loans jumped strongly by 11% QoQ to INR25.9b, driven primarily by lower interest expense (-1% QoQ, despite 3% QoQ increase in borrowings). The company hiked wholesale lending rates by average 65bp and retail lending by 20bp in 2HFY19. The borrowing mix remained unchanged. On a reported basis, spreads improved to 2.3% in FY19 from 2.26% in 9MFY19.

Piping hot news

CPI inflation quickens to six-month high of 2.92% on food, fuel prices

• Retail inflation quickened to a six-month high of 2.92% in April, driven in large part by accelerating food and fuel inflation, according to official data released on Monday. Growth in the consumer price index (CPI) quickened in April from 2.86% in March. Within the index, growth in the food and beverages segment accelerated to 1.38% in April compared with 0.66% in March. Similarly, the fuel and light segment saw inflation quickening to 2.56% from 2.34% over the same period.