I am surprised how well you have tracked these transactions, my current allocation to HDFC bank is ~5%, as a result of their merger with HDFC and general share underperformance. But I haven’t sold anything (either in HDFC bank or in HDFC). About upgrading it to 8%, I can do it if there is a sharp upmove in the market and I am unable to find better opportunities. However, currently there are lots of other opportunities.
About HDFC bank, there is no other lending company with such consistent nos for such a long period of time. Currently, people are more fascinated by loss making banks making profits and ignoring how well HDFC and HDFC bank managed the 2020 downcycle. This kind of environment reminds me of 2017, when people were more fascinated by Repco/Indiabulls/DHFL. Generally, I tend to be conservative when it comes to banks or NBFCs. Also, given how HDFC bank is priced currently, its easy to make 25%+ CAGR and I am reasonably confident about it working out.
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