ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Lok Sabha 2019 elections: This major lender's shares gave over 204% return in 5 years

Lok Sabha elections 2019 result: Days before D-Day, this lender clocked an all-time high of Rs 2,449 per piece. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Lok Sabha 2019 elections: This major lender's shares gave over 204% return in 5 years
On Lok Sabha Elections 2019 counting day HDFC Bank did see negative sentiment from investors. Photo: Reuters

A stock with good business portfolio and stable growth outlook is worth buying on Dalal Street,even if it witnesses volatility. This is because, in the longer term it can give you better returns than any other traditional investment scheme. The reason is the magic that stock exchanges work even though they are volatile and risky. This is very much true in case of HDFC Bank stock. However, on Lok Sabha Elections 2019 counting day it did see negative sentiment from investors. Point of note, however, is that experts are very optimistic about HDFC Bank. Hence, the current drop can be taken as opportunity for buying this stock. Why? Because from previous 2014 elections to current one, this private lender more than doubled returns for investors! 

On Thursday, HDFC Bank share price ended at Rs 2,334.35 per piece down by Rs 70.75 or 2.94%. However, days before the D-Day, this lender clocked an all-time high of Rs 2,449 per piece. From May 16, 2014, when election verdict was announced with NDA win to latest 2019 one, HDFC Bank shares have jumped by a whopping Rs 1,644 or 204.33%. The shares were a little over Rs 804 per piece then. 

For outlook ahead, Reliance Securities analysts said, “Despite higher cost of funds and sequential decline in CD ratio, the Bank sustained its margin by altering its loan mix. Growth in retail loans moderated due to a mix of factors including impact of high base and moderate growth in unsecured portfolio. Moreover, given the increased cost of funds, the Management chose to shift away from low-yielding segments like home loans. Looking ahead, we expect the Bank’s margin to remain stable over the next two years."

As on FY19, deposits grew by a strong 8% QoQ led by 27% and 5% sequential growth in CA deposits and term deposits, respectively. The analysts said, “ Sharp rise in CA was driven by a commensurate growth in corporate loans. Term deposits mainly constituted of granular retail deposits, in line with the Bank’s focus over the last few quarters. Consequently, CASA ratio increased sequentially even as it declined on YoY basis. Nonetheless, the decline in SA ratio is mainly driven by shift to term deposits by the existing customers, led by higher TD rates. Developments in the Bank’s liability franchise and industry will be a critical area to watch out for.”

Thereby, Reliance Securities said, “The Bank’s strong lending and deposit franchise, healthy capital position and impeccable asset quality performance across cycles have been aiding stable RoAs over the years. At CMP, the stock trades at 1-year forward multiple of 3.7x. Marginally tweaking our earnings estimates for FY20E/FY21E, we maintain our BUY recommendation on the stock with an SOTP-based Target Price of Rs2,650 (based on 3.7x FY21E adjusted PBV and the value of its subsidiaries, implying a FY21 P/ABV of 3.8x).”

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
HDFC BankSensexlok sabha election resultsMarketsbjp partyNarendra Modi
Written By: ZeeBiz WebTeam
Updated: Thu, May 23, 2019
09:33 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
RBI gives approval to SBIFML to acquire 9.99% stake in HDFC Bank RBI gives approval to SBIFML to acquire 9.99% stake in HDFC Bank
HDFC twins weigh on Dalal Street as shares go ex-dividend HDFC twins weigh on Dalal Street as shares go ex-dividend
Market update | Nifty Bank nears all-time high; what is driving the rally? Market update | Nifty Bank nears all-time high; what is driving the rally?
Traders' Diary: Buy, sell or hold? Hindalco, Infosys, ICICI Bank, HDFC Bank, Zomato and 15 other stocks Traders' Diary: Buy, sell or hold? Hindalco, Infosys, ICICI Bank, HDFC Bank, Zomato and 15 other stocks
HDFC Twins, SBI, Bharti Airtel - 4 of top 10 valued Indian firms lose Rs 56,006 crore in market valuation HDFC Twins, SBI, Bharti Airtel - 4 of top 10 valued Indian firms lose Rs 56,006 crore in market valuation

LATEST NEWS

Cabinet secretary-led panel to interview five candidates for RBI deputy governor's post on June 1

Uber partners with GeM portal to offer taxi services to govt offices, agencies, PSUs at fixed price

3 Kuki 'terrorists' killed in encounters since May 3: Manipur CM

Union government trying to ruin development of Kerala, says CM

India facing `very complicated challenge' from China, ensuring no attempt made to change status quo in border areas unilaterally: S Jaishankar

PM Modi to flag off North East's first Vande Bharat Express in Guwahati tomorrow

UP govt to set up body for state capital region

IPL 2023 Final Match Live Streaming: When and where to watch Chennai Super Kings Vs Gujarat Titans match

New Parliament building starting point of India's journey towards excellence: Amit Shah

China PC market suffers 24% decline, Lenovo leads

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV