InvestorQ : I am shareholder in HDFC for a long time. After the results today, should sell the stock or should add more of the stock?
Dawn Cherian made post

I am shareholder in HDFC for a long time. After the results today, should sell the stock or should add more of the stock?

Answer
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Dilmini Mercia answered.
1 year ago


HDFC announced its fourth quarter results and again showed a healthy growth of 27% in net profits to Rs.2862 crore. Total income was also up by nearly 24% to Rs.11m587 crore in the fourth quarter. The net interest income (NII) was also up by 19% in the fourth quarter at Rs.3161 crore. However, for the full year 2018-19, the net profits were lower by 12% at Rs.9632 crore. This is was a result of higher cost of funds post the liquidity crunch in September last year and the IL&FS debacle. HDFC has maintained its Gross NPAs at 1.18% and net NPAs at 0.70%, which is among the best in the HFC segment.

You need to remember, that this is not a stock that moves very widely and even in volatile markets, the stock stays in a range. While there is really no reason for you to increase your stake in HDFC, you can hold on to the stock as the best play in the rapidly growing housing sector in India. Also, HDFC has huge value hidden in its group companies which are not fully factored in the price. There is no reason for you to sell the stock, although any aggressive addition to the stock may not be called for.