As in today’s world, if you want to earn money with fewer efforts, the stock market is the biggest way to do so. In this game, there will be many helpers for you who will help you to pick the right shares.
Pankaj Aggarwal who is one of the stockbrokers. was stuck at the sell rating of the HDFC shares. In this time many other brokers have made themselves triple in the value. Still, the investors who were following the leads given by Pankaj Aggarwal have got 36% returns in the past 12 months. This was more than 40 analysts covering the stocks.
HDFC’s stocks are too expensive as they rebounded 63% from March low, also there were risks related to management change, quality of the assets. It was also one of the most challenging phases for Indian lenders. Then there was a credit crisis.
We can surely say that the worst stock performers in India of this year will be the bank stocks. As the lenders can also see a rise in the Sour loans. These types of loans are going to rise at such a height, where it hasn’t reached within 2 decades.
HDFC Bank had a recent post of profit in the September end quarters. It was 17% more than the value expected by the different analysts. The ratio of Bad loans had also decreased, but it was all because of the regulatory exemptions which make it difficult for them to read the asset quality trend, Aggarwal said.
India’s largest private lending bank is trading at 3.5 times book value, it is more than many banks globally. It also has a market cap of $50 Billion. Its stock has decreased just by 2% this year. Investors are missing on some point, Aggarwal said.
As the COVID has affected banks a lot many stock analysts are no longer with the banks also the risk on balance sheets is a lot higher in terms of the corporate and retail loan.
The Lender’s chief executive in HDFC is going to retire next month after serving 3 decades. Now Sashidhar Jagdishan will be the new lending chief executive. The new management needs to make a lot of efforts to fill the boots of previous management.
In the September quarter, the HDFC bank saw a boost in its loan by 26.5%. Its retail loan book slowed down from 14.7% to 5.3%.