HDFC Bank, the listed entity has yesterday announced the results and same is available at BSE website. We all know, HDFC Securities and HDB Financials are the subsidiary of HDFC Bank, so along with their results, they have to show the results of their subsidiaries as well. And, both the subsidiaries are well known unlisted shares. Let us see how both the subsidiaries have performed and current valuation.
HDB Financials Q2FY22 Results Update:
1. Total Loan book stands at 60,000 Crores as on 30.09.2021 which was ~59774 Crores as on 30.09.2020. And, liquidity coverage ratio is at 157%, which is quite healthy.
2. Revenue for the Q2FY22 has grown to 1900 Crores from 1700 Crores in Q2FTY21. A jump of 12% in revenue.
3. Operational Profit before Provisioning and Contingency was 885 Crores in Q2FY22 as compared to 816 Crores in Q2FY21.
4. Provisioning and Contingency has reduced to 629 Crores in Q2FY22 as compared to 929 Crores in Q2FY21.
5. This quarter they have generated a PAT of 191 Crores against a loss of 85 Crores last year in the same quarter.
6. This quarter the Gross Stage 3 NPA stands at 6.1% as compared to 8.1% last year in the same period.
HDFC Securities Q2FY22 Results Update:
1. HDFC Securities has clocked revenue of 433 Crores in Q2FY22 as compared to 344 Crores in Q2FY21. 42% jump in revenue.
2. It has generated a PAT of 240 Crores this quarter as compared to 165 Crores in the same quarter last year.
3. EPS stands at ~150 per share for second quarter.
So, if we annualise the PAT and EPS of first two quarter, we may see PAT of 1000 Crores and EPS of ~600 for FY21-22.
Current market price of HDFC Securities unlisted share is ~18000 per share. Then ~P/E would be 30x. Its nearest peer in the listed market is ICICI Securities which is currently trading at P/E of 24x. So, HDFC Securities looks tad expensive now.
Result Analysis in Video