Making a fundamental analysis of HDFC Bank as of now from historical data does not make sense as it has gone through a huge ownership restructuring process as hdfc bank merged hdfc with itself becoming the single entity.

The biggest advantage HDFC Bank earlier had was its tech but not anymore, almost every other competitor today is equipped with similar tech.

ICICI Bank has shown far better growth in terms of new customer acquisition in the last 2-3 years.

Hdfc banks face the biggest challenge in retail as follows:

Moving to tier 2 tier 3 cities and rural areas to acquire customers would harm the bank more as they have a high Min balance requirements and high service charges (as people are accustomed to nationalised banks in these areas)

They have a huge fleet of ATMs and it is more than worrisome to maintain these as people have quickly shifted towards UPIs and maintenance cost could eat out huge portions of profits (5-10 years back it used to be the core edge they had)

HDFC Bank used to be the front runner in the credit card segment but currently the space has become too crowded with competition making it very hard to have a good profit margins.

But at current valuations, it is very hard to resist this keeping in mind the time it might take to unfold the merger benefits which could be 5-8 Qtrs from here.

It has a huge huge customer base to which it could cross sell its other financial services and products and this merger has added another big already established customer base.

The short term view could be near the election from now on till July end nearing results declaration of Q1.

Long term perspective is for almost 4-5 years making it a little sluggish but rather a safe bet in the fundamentally strong player.

@Mohit_baid @ashwind how much risk do you guys see from rising commodity prices. We are still in a inflationary environment and inflation can comeback in commodities like steel. Has management made any comment on how much margins can fall in case of steel price increase?

AVANTEL RECEIVED A second ORDER today. It is FROM MATERIAL ORGANISATION, VISHAKAPATANAM WORTH 4.24 CRORES

Going through this thread I have to take my hat off to @Kumar_manas for understanding the company and the sector that it operates in perfectly. Well done sir. Also in hindsight its so obvious how cheap the company was but few will put their money where their mouth is. Another thing to note is how long the market takes to recognize the fact and the rerating to occur. It’s almost as if the market fails to recognize that a turnaround in the balance sheet has occurred and still remembers the misdeeds of the past. True test of patience but reward is sweet at the end.