I agree with your concern and had similar thoughts about HDFC Bank. Citi and BoFA both are most likely to outperform HDFC Bank shares going forward especially when returns are measured in dollars.
Banks in US such as Citi, BoFA and bunch of others are trading at very low valuation due to recession fears and other factors but once these clouds clear they can deliver 30-50% return in short time.
Premium valuations for HDFC and other Indian banks will be in question as economy opens up more leading to more competition and these big banks get compared to global peers. HDFC bank’s return for last 5 years haven’t been that great especially when compared in the terms of dollar.
High multiple stocks in India will be in question once compared to similar global companies. Investor can make good money when multiple expansions is combined with rising profits but stagnating profits or even slowly increasing profits can lead to multiple compression.
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