The present Market dip, if I may call it that, is throwing up great opportunities to get into pedigree stocks at reasonable valuations. The Banking Sector is an Institutional favourite and quite rightly is looked upon as a proxy for the India Growth Story. HDFC Bank is the largest private sector Bank in India and is a top investment pick from the Banking Sector. It is trading at a CMP of Rs 466 {52 week high of Rs 519 and 52 week low of Rs 396) and a Price to Book multiple of 4.29 which seem to be fair valuations for a quality Bank that HDFC Bank definitely is.
The Scrip has given safe and steady returns of about 15% in the past six months which is excellent considering the hard Interest rate regime. The 50 DMA is 487 and the 200 DMA is 458. The scrip has seen a correction in sync with the current Market downturn but has found great support at 450 levels.
HDFC Bank has delivered excellent Q1 FY11-12 results and has shown robust growth in Net Profit as well as Net Interest Income; at the same time it has been able to sustain its Net Interest Margins despite the difficult environ which is indeed creditable. Importantly its Gross as well as Net NPAs are marginally lower which points towards great management of Asset Quality. All in all HDFC Bank is definitely my top pick from the Banking space.
The scrip can be bought at current levels and on all dips in case Market downturn continues.
The Scrip has given safe and steady returns of about 15% in the past six months which is excellent considering the hard Interest rate regime. The 50 DMA is 487 and the 200 DMA is 458. The scrip has seen a correction in sync with the current Market downturn but has found great support at 450 levels.
HDFC Bank has delivered excellent Q1 FY11-12 results and has shown robust growth in Net Profit as well as Net Interest Income; at the same time it has been able to sustain its Net Interest Margins despite the difficult environ which is indeed creditable. Importantly its Gross as well as Net NPAs are marginally lower which points towards great management of Asset Quality. All in all HDFC Bank is definitely my top pick from the Banking space.
The scrip can be bought at current levels and on all dips in case Market downturn continues.
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