Are the glory days over?
HDFC Bank presented the results few days ago with impressive growth of 25% (YoY) but this was second successive miss of 30%+ growth it was able to achieve for last 13 years in a row till the trend was broken in FY 2013-14 Q2 and Q3.
Interesting comparisons:
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**Comparison charts are from Moneycontrol.com
If I compare this directly with Ramesh Sobti's headed Indusind bank. The valuation of later looks more interesting for the following reasons:
1. Ramesh Sobti has proven track record of growth and profitability (Company is growing @ 30%+ for last many years)
2. Indusind Bank being of smaller size will face less hurdles to sustain 30% kind of growth going ahead.
3. Since 2008 Indusind bank has given more than 1700% return compared to ~250% return by HDFC bank in the same duration
4. Even at current valuation Indusind is trading at lower valuation than HDFC Bank.
Should Indusind Bank replace HDFC Bank in your portfolio ?
Happy Investing
Disclaimer: I have no positions in either Indusind Bank or HDFC Bank
HDFC Bank presented the results few days ago with impressive growth of 25% (YoY) but this was second successive miss of 30%+ growth it was able to achieve for last 13 years in a row till the trend was broken in FY 2013-14 Q2 and Q3.
Interesting comparisons:
**Comparison charts are from Moneycontrol.com
If I compare this directly with Ramesh Sobti's headed Indusind bank. The valuation of later looks more interesting for the following reasons:
1. Ramesh Sobti has proven track record of growth and profitability (Company is growing @ 30%+ for last many years)
2. Indusind Bank being of smaller size will face less hurdles to sustain 30% kind of growth going ahead.
3. Since 2008 Indusind bank has given more than 1700% return compared to ~250% return by HDFC bank in the same duration
4. Even at current valuation Indusind is trading at lower valuation than HDFC Bank.
Should Indusind Bank replace HDFC Bank in your portfolio ?
Happy Investing
Disclaimer: I have no positions in either Indusind Bank or HDFC Bank
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