stock
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NYSE:HDB
48.63
+0.98 (+2.05%)
As of 2020-09-25 Close (EST)
52 Week Rng -
Market Cap -
Avg Volume -
1M Volatility -
Short Ratio -
P/E Ratio (TTM) -
P/E Ratio (Fwd) -
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BUY
100,000
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SunriseCorp Duke Emerging Market Portfolio Management (Fall 2020) 1w

We want to buy 100,000 shares of HDFC Bank at around $50 a share, for a total investment of around $5 million. HDFC Bank is India’s largest private sector bank in terms of assets and market capitalization. It was doing very well pre-pandemic, hitting highs of around $65, before dropping almost 50% to lows of around $35 in March when the pandemic escalated in severity. Since then, it’s been consistently trending upwards to its current price of $49.33, though it still has significant stretches of runway before reaching pre-pandemic prices and is still undervalued. We believe that HDFC Bank is a good investment because although its profitability did see some negative impacts due to COVID, its asset quality remains strong and it continues to hold the greatest market share among private banks. There doesn’t seem to be any sign that its long-term profitability and growth have been impacted by COVID, which can be seen in how investors have reacted since the initial downturn in March. Furthermore, the financial sector as a whole is more insulated in terms of being impacted by COVID as consumers still have need of bank services, especially as India’s economy continues to recover from the pandemic. In terms of long-term rationale, HDFC Bank is also one of the top players in the digital payments space, and stands to benefit greatly from the continued move away from the usage of cash. HDFC Bank currently has a beta of around 0.97 and a P/E ratio of 25.54. Comparing this to its closest competitor, ICICI Bank, which has a beta of around 1.41 and a P/E ratio of 23.96, we can see that HDFC Bank is a comparatively less risky investment, and that its P/E ratio is reasonable when compared to the rest of its peers.

BUY
25
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SELL
50
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TICKER
SHARES
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BUY
20
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SHARES
STATUS
SELL
1
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SHARES
STATUS
BUY
20
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TICKER
SHARES
STATUS
SELL
500
×
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BUY
100,000
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DUKE_DOLLAR_TREE Duke Emerging Market Portfolio Management (Fall 2019) Nov 2019

Housing Development Finance Corporation will offer us more exposure to India and introduce our portfolio to the financial services sector, an industry that we have been lacking to this point. We believe that recent rate cuts in India could spur more borrowing. Furthermore, the company's relatively low beta offers our portfolio more diversity as well.

BUY
100,000
×
ACTION
TICKER
SHARES
STATUS

DUKE_DOLLAR_TREE Stockfuse Continuum (US) Nov 2019

Housing Development Finance Corporation will give us more exposure to India and the financial services industry, a sector that has been missing from our portfolio thus far. The company's relatively low Beta offers us more diversity as well.

BUY
6,500
×
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TICKER
SHARES
STATUS
[SELL]
2,000
Filled
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TICKER
SHARES
STATUS
BUY
100
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TICKER
SHARES
STATUS
BUY
500
Filled
ACTION
TICKER
SHARES
STATUS
[SELL]
100
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ACTION
TICKER
SHARES
STATUS
[SELL]
400
Filled
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TICKER
SHARES
STATUS
BUY
40
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TICKER
SHARES
STATUS
BUY
8
Filled
ACTION
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SHARES
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[SELL]
40
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SHARES
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BUY
200,000
×
ACTION
TICKER
SHARES
STATUS
SELL
20
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