Stockchase Opinions

Brett Girard, CPA, CA, CFA HDFC Bank Ltd HDB-N BUY Apr 22, 2024

To invest in India

As India's middle class grows, that will feed demand for banking services (i.e. mortgages). HDFC is India's second-largest banks.

$57.665

Stock price when the opinion was issued

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BUY
An Indian bank tied into the Indian government. They carry a AAA rate. They are trading flat this year. They have held up well compared to others in the field.
BUY
For a 10-year hold. It's a premier private bank in India. They've done very well, though they just had a big drop. The Indian currency is at a discount. A good place to be if you are interested in emerging markets. Right now, he isn't buying emerging market banks, but if you are, it wouldn't be a bad choice.
BUY
Fantastic. India will have the biggest population in 5 years. Has only 1.5% loan loses vs 6% at ICICI bank, the other big Indian bank
BUY
Has an ADR? Yes. India is facing economic issues as it grows under its PM, now in his second term. HDFC is well-positioned, suffering lower loan losses than other banks like ICICI. You want to invest in India which has a huge, growing middle class.
WAIT
Premier bank in India. Going forward, we're going to see a fair amount of pain. With loan losses and low interest rates, bank profits will be under increasing pressure. Not a buyer of banks at this point. In a better environment, he thinks highly of this one.
COMMENT
India has been affected by covid. In India, prefers HDFC Bank over IBN, which is the second largest bank. Loan losses have been less at HDFC and they have maintained higher capital ratios. As India rounds the last corner of covid, the name should do well. Longer term demographic and macro trends are positive.
BUY
Best bank in India. Foreign investors like it a lot. Challenge is low interest rates, but the macro is changing. Upside from these levels. Reasonable valuation. Reasonably attractive at these levels.
BUY
One of the larger banks and has highest credit rating in India. Weakness in stock (12x P/E ) compared to European peers (20x P/E). Not as much access to vaccines, so business in India muted. Good opportunity to buy as business is growing. India has population under 35 which provides good opportunity.
BUY

Investing in India right now makes all the sense in the world. It's the largest population now, surpassing China. India has significant growth, population is relatively young and moving to cities, with more banking needs required. 

Second-largest bank in India. Just completed a merger with a mortgage business.