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Not just a home-loan play, HDFC is a value bet on banking, insurance and asset management

HDFC has underperformed the Nifty during the pandemic, but there has been an uptick in the stock. To be on the growth path, the company will either have to start lending smaller ticket sizes or be known as a holding firm for the HDFC group – where it will get regular dividends or can sell stake in subsidiaries.
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4 Aug 2020 9 Mins Read 1 comments
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The Nifty 50 crashed 40% in March 2020 from its January peak, and one of the worst-affected sectors was banking and NBFC – with some of the stocks falling 50%. But when the Nifty rose 40% in June, most of the banking and NBFC companies failed to recover. Even those that were leaders in their space are struggling. Take HDFC,
than its housing-finance peers because while it seems synonymous with real estate, HDFC is actually not. In the future, unlike other finance companies, HDFC will be valued more as a holding company. This is not bad. If you want to bet on insurance, banking and AMC, then HDFC is the way to go. ( Graphics by Mohammad Arshad)
The Nifty 50 crashed 40% in March 2020 from its January peak, and one of the worst-affected sectors was banking and NBFC – with some of the stocks falling 50%. But when the Nifty rose 40% in June, most of the banking and NBFC companies failed to recover. Even those that were leaders in their space are struggling. Take HDFC, than its housing-finance peers because while it seems synonymous with real estate, HDFC is actually not. In the future, unlike other finance companies, HDFC will be valued more as a holding company. This is not bad. If you want to bet on insurance, banking and AMC, then HDFC is the way to go. ( Graphics by Mohammad Arshad)

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