Housing Development Finance Corporation Ltd (HDFC) is a leading light in the Indian Financial Sector and an Institutional favourite for purposes of long term investment. It is often looked upon as a proxy on the growth story in the Financial Sector in India and as such should be in every long term investor Portfolio.As the name implies HDFC is the leading player in the Housing Finance and allied areas in India with an Annual Turnover of about Rs 12500 crores (FY 2010-2011).
At the CMP of Rs 688 (52 week high Rs 780, 52 week low Rs 574) it is trading at Price to Book of 5.85. Its 200 DMA is at 678 and 50 DMA at 677 and has given steady returns of about 15% over the last year. Despite the adverse stage in the Interest Rate Cycle the Company has reported reasonably good results in line with Market expectations for Q1 FY2011-2012. However the current negative Market sentiment on all rate-sensitive stocks and the possibility of further tightening of the Interest Rate regime could see this scrip drifting down to levels of 625-650 in the short to medium term.
But a gem is a gem and the short term negatives notwithstanding, HDFC remains a definite buy at levels of 625 and lower for all long term investors.
At the CMP of Rs 688 (52 week high Rs 780, 52 week low Rs 574) it is trading at Price to Book of 5.85. Its 200 DMA is at 678 and 50 DMA at 677 and has given steady returns of about 15% over the last year. Despite the adverse stage in the Interest Rate Cycle the Company has reported reasonably good results in line with Market expectations for Q1 FY2011-2012. However the current negative Market sentiment on all rate-sensitive stocks and the possibility of further tightening of the Interest Rate regime could see this scrip drifting down to levels of 625-650 in the short to medium term.
But a gem is a gem and the short term negatives notwithstanding, HDFC remains a definite buy at levels of 625 and lower for all long term investors.
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