Last Updated on Feb 15, 2022 by Aradhana Gotur

Shares of HDFC have been in the red, trading near their 52-week low for quite some time now. The stock has dipped 19% last year and is the second worst-performing scrip on Nifty 50, only after Hero MotoCorp.

Today, Bajaj Finance briefly overtook Housing Development Finance Corporation (HDFC) as India’s biggest non-banking finance company (NBFC) based on market capitalisation. Bajaj Finance’s market cap touched Rs 4,17, 385 cr to beat HDFC’s Rs 4,17,076 cr.

Analysts have suggested that HDFC could continue to be under pressure on margins because of the increasing competition in the housing finance segment.


However, CLSA India has maintained its ‘outperform’ rating on the stock, expecting the NBFC to benefit from a hike in domestic interest rates and undemanding valuations.

The underperformance of its listed subsidiaries has also weighed heavily on HDFC. All of them have given negative returns in the last 12 mth. HDFC Bank, HDFC Asset Management Company, and HDFC Life Insurance have decreased 7-27% in the previous year.

However, Bajaj Finance’s pivot from traditional lending to fintech solutions has received optimism from both investors and analysts. Although the stock price nosedived over 15% from a record high due to the ongoing market correction, analysts have maintained a favourable view of Bajaj Finance.

“Valuation is not cheap – but business and earnings momentum with improving economy and technological initiatives imply that the stock will keep doing well,” brokerage firm Morgan Stanley India said in a note last month.

Aradhana Gotur
Subscribe
Notify of
guest
2 Comments
Inline Feedbacks
View all comments

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.