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MOSL: Morning India (2/May/18)-1. Automobiles (April Vol. nos); 2. Cement (Update); 3. Larsen & Toubro; 4. HDFC; 5. Kotak Mah. Bank; 6. Hindustan Zinc; 7. Dabur India; 8. Idea Cellular

MOrning India (2/May/18): 1. Automobiles (April Vol. nos); 2. Cement (Update); 3. Larsen & Toubro; 4. HDFC; 5. Kotak Mah. Bank; 6. Hindustan Zinc; 7. Dabur India; 8. Idea Cellular

 

Today’s top research idea

HDFC: AUM growth stable; rise in share of retail loans

• HDFC Ltd. (HDFC) reported a 22% beat on PAT, helped by a lower tax rate (20% v/s estimate of 30%). Core PBT (+11% YoY) was in line with our estimate.
• The quarter was marked by healthy AUM growth (+18% YoY/+4%QoQ), sequentially stable cost of funds (calculated) despite rising bond yields, and stable asset quality.
• Loan growth in the retail segment remained steady (+5% QoQ, +18% YoY), while that in the corporate segment (+2% QoQ, +17% YoY) was marginally lower than the trend in the past few quarters. Overall, the share of retail home loans was up 50bp QoQ at 72.9%. HDFCB has not bought back loans over the last two quarters, leading to a rise in the share of on-book AUM to 90% v/s 88% a year ago.

Piping hot news

GST collections cross Rs1 trillion in April, first time since launch

• Goods and services tax (GST) collections touched a record Rs1.03 trillion in April, the first time it has crossed the Rs1 trillion-mark in any month since the new tax regime debuted on 1 July. The buoyancy in tax collections could be attributed to economic recovery and improvement in compliances, the finance ministry said in a statement, but cautioned that the higher numbers could be partly due to the payment of tax arrears