Skip to main content

Stock Watch - HDFC

Housing Development Finance Corporation, founded in 1977, is the leading institution focusing on home mortgages.HDFC has a wide range of distribution network of over 250 outlets and 50 offices.HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network.

Positives
Demand from re-sale and new properties to remain strong barring urban areas.

Pre-eminent return ratios and healthy asset quality fetch premium valuation.
Valued on SoTP methodology, core business trading at 2.3x P/ABV of FY09E.
Loan growth outlook remains positive, FY09 loan book growth at over 20% yoy.
Liquidity conditions improving now, fund raising picks up.
The quality of builder’s loan book, comprising of 12% of the total outstanding loan book, remains healthy.

Concerns
Moderation in housing demand may impact business growth
Liquidity crunch and constrains in raising funds may pressurize margins.

At current price of around Rs.1500, the stock trades at 16 times forward earnings of Rs.90.Long term investors can buy/accumulate on declines, with a 12 month view for a good return.

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !

Mutual Funds - How to modify KYC or do rekyc?

Last year SEBI issued a circular effective April 1, 2024 regarding KYC norms for the securities market. This has created a lot of confusion among investors and intermediaries, whether who has to do rekyc and who need not? First check your KYC status from CVL KRA . If the 2nd column says KYC VALIDATED, then you are good to go - no action required. You can invest and redeem all the funds. If it says registered, you can invest in existing Fund houses. You have do rekyc to invest in new fund houses/ schemes. If it is on hold, you have to do rekyc.  You can do rekyc completely online from the AMC's websites, links of which are given below: Bandhan Mutual Fund - Bandhan Canara Robeco Mutual Fund - Canararobeco DSP AMC - Dsp Franklin Templeton Asset Management Franklintempletonindia HDFC Mutual Fund Hdfc ICICI Prudential Mutual Fund Icicipruamc Kotak Mahindra Mutual Fund  Kotak SBI Mutual Fund  Sbi Investors having KYC status of  'Registered' or 'On Hold' can complete thei...