Friday, 21 November 2008

Hold HDFC Bank: R Shah

Rajen Shah of Angel Broking is of the view that one can hold HDFC Bank.

Shah told CNBC-TV18, "Ever since HDFC Bank got listed it has enjoyed premium valuations viz other banks and it has been growing 30% every year that has been its performance over the last 10-12 years. I haven’t seen this stock at such reasonable valuations ever since it has got listed and its quoting at about 15 times the current year earnings and about 2.25 times the book value. So this is a reasonable price for this stock and it doesn’t make sense for exiting the stock at the current levels. We do expect about 40%-50% kind of upside, absolute returns in about 24 months time frame in it, so one should hold on to it."

Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.