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basant
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   Posted: 09/Oct/2006 at 10:33pm |
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Just normal I would assume. Yes it is a great bet for long term investment and should be accumulated for a annual return of 25% which could go up once value is unlocked..
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basant
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Posted: 23/Oct/2006 at 6:12pm |
For the September quarter 2006 HDFC's income rose 39% to Rs 1456 crores from Rs 1048 crores. The net profit rose by 23% to Rs 368 crores from Rs 298.9 crores. ?The company was able to maintain its net interest margin at 2.16%. The rise in total expenditure (especially inteerst and other charges) led to a less then propotionate increase in net proffit compared to the growth in Income. The company seems all set to start a company that would look after its real estate funds which plans to raise US $ 750 million through overseas investors later this year.
The stock remains a classic core portfolio holding.
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investor
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Joined: 06/Sep/2006
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Posted: 24/Oct/2006 at 9:41am |
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from todays ET:
Pay revision at HDFC Bank fuels reverse merger talk
A salary revision and spate of redesignations in HDFC Bank have once again
stoked rumours of a possible reverse merger of the parent HDFC with the bank.
Even though the market and
banking circles have been betting on it for quite some time now, both HDFC and
HDFC Bank have denied any move towards a merger in response to a report filed by
a news agency on Monday.
The
agency had indicated that the redesignations in the bank were a precursor to a
possible merger. Denying this, Renu Karnad, executive director, HDFC, said,
“There is enough growth opportunity for HDFC in the mortgage business.
HDFC is very happy with its shareholding in the bank as it is adding significant
value and the bank is sourcing home loans for
HDFC.”
HDFC Bank had
recently upgraded the designations of all employees’ right from the junior
most to the executive vice-president level. According to Aditya Puri, MD, HDFC
Bank, redesignation as well as salary adjustments are in line with the results
of a recently-concluded salary survey. He said it had nothing to do with a
merger between HDFC and HDFC Bank and that these rumours were
baseless.
However, the rumours
of a possible merger have thickened over time due to various reasons: first,
many feel that as a single-product company, HDFC will have to rethink its
strategy in future; second, hardening interest rates could make the going tough
for HDFC; and, third and most significantly, it’s a widely-shared
perception that managements of the two organisations may be more inclined now to
talk about the possibility.
Besides, unlike a merger of
ICICI and ICICI Bank, integrating the operations of the bank and mortgage firm
will not cause severe strains on account of reserve requirements (that are
applicable to a bank).
Rumours of a merger between
the two have been repeatedly surfacing after other financial institutions
converted into banks through reverse mergers. ICICI merged with ICICI Bank over
five years ago while more recently, IDBI converted itself into a bank
consolidating IDBI Bank with its own operations.
Analysts
also felt competition from banks and rising interest rates could eventually
throw up the merger option. However, Ms Karnad said there was no pressure to
merge as HDFC continued to grow its loans as well as profits on its
own.
As far as the bank’s
recent redsignations are concerned, there have been no promotions or change in
job content. For instance, according to the new changes an executive has been
redesignated as assistant manager, a senior manager as assistant vice-president,
assistant V-P has been redesignated as V-P, V-P as senior V-P and senior V-P has
been designated as executive V-P.
The bank has around 10 group
heads and there has been no change in those designations. Officials point that
in case of HDFC the designations are different from that of HDFC Bank. The
corporation has around 13 grades including senior officer, assistant manager,
manager, deputy GM, GM, senior GM and executive director.
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basant
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Posted: 24/Oct/2006 at 10:30am |
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This should be very bullish for the stock. HDFC holds 22% in HDFC Bank and on merger this equity should get cancelled leading to a reduction in total equity and increase in EPS.Otherwise this 22% equity fetches HDFC only dividend income which is hardly 1% and the market will never account for this value since this a is a holding company.Moreover operational synergies should help the consolidated entity maintain 30% plus growth - that is if that merger happens.
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India_Bull
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Joined: 19/Sep/2006
Location: United States
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Posts: 2296
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Posted: 11/Nov/2006 at 4:23am |
Hello Basanji,
There are some symptoms of merger being seen between hdfc and hdfc bank.
If the merger happens which shareholders(hdfc or hdfc back) will be benefited significantly?
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India_Bull forever Bull !
www.kapilcomedynights.com
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basant
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Posted: 11/Nov/2006 at 9:09am |
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Add 25% immediately to the price if that merger goes through.Even otherwise this stock is a no brainer!Buy It for significant long term wealth creation.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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reetesh
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Location: India
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Posts: 793
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Posted: 03/Dec/2006 at 5:48pm |
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Sir, you said that HDFC and HDFC Bank will be 100 times more than what they are today in 20 years? So can I also buy with same vision, but some what earlier than you are, But my main worry is market cap. 100 times more and price of 1,50,000 & 1,20,000 respectively, very very bold assumptions...
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When going gets tough, that’s when tough (people) gets going.
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basant
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Posted: 03/Dec/2006 at 5:54pm |
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It does not seem that bold when you consider a CAGR of 26% only. Now 100 does not mean 100 it could also mean 85 times but broadly I am at that.
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