![]() SBI Life is also in our preferred picks list. Multiple things are happening loan growth is good, they have focussed quite a lot on digital and that is going to help their retail and margins expansion while asset quality is improving and recovery through multiple recovery channels is going to happen and show up in this current fiscal and the subsidiaries.Īs far as SBI is concerned, the subsidiaries are also performing very well. It has been one of our favourite stocks, it is definitely recommended. That would be my specific suggestion on HDFC.ĭo you think that time has come to go for PSU banking names? There is no major FII ownership over there and that gives a leeway that they may not fall as much as they used to be high beta earlier? Do not put all the money together at one go, keep watching the stock and keep buying in small lots. If somebody is willing to be a little aggressive, then one can start accumulating HDFC Bank at current levels. Personally my view is HDFC with this correction is a good buy. There are issues which the merger will throw up and I think there is a bit of uncertainty around HDFC. There is the overall MSCI Index adjustment. There is a merger on and that merger will factor in a whole lot of things. So on that large base, significant credit growth which beats the market expectation and a fantastic asset quality is definitely something to be proud of. So there is very little to fault in those numbers and remember HDFC has a large base. One is HDFC specific where I think the numbers were not that bad, the loan growth was solid and the asset quality was fantastic. What is your outlook when it comes to the banking space? What explains the underperformance in the HDFC group of stocks? We will have to see but the correction is real. If you are taking a two year-three year kind of a time horizon, IT will come back but there will be a correction – time correction or price correction. There is still a lot of demand for their products and services. but by and large we will expect to see some value correction as far as IT is concerned.īut one has to remember that if you are looking at the longer term, IT will come back and deliver results. There will be companies who will still perform better than the industry, based on the category of the segment they are servicing. The scorching growth which they did show and the margin upswing which they did present to us in 2021 probably will be a bit difficult to produce in this current calendar year and financial year as well. Some of them are focused on segments which have got traction back like travel and tourism and the story may be slightly different but by and large, the pressure is for real as far as IT is concerned. ![]() ![]() Now Infosys being one of the leading companies is in this stage, the midcap IT companies which were quoting at even higher PE multiples and to an extent were unsustainable, obviously will be facing a lot of challenges. Now when that logic is being proven wrong and there is a dip and Infosys underperformed on all the parameters, I think a correction was expected.
0 Comments
Leave a Reply. |