In the last few messages, many have determined HDFC Bank is at cheap valuation just because it is lower than historical valuations. Is that a good enough reason ?
Things to Ponder
- Why is the bank not able to raise deposits in sync with Assets ?
- HDFC Limited deals cannot be replicated by HDFC Bank since they are under more stringent regulations. How will it be replenished? So forget growth the base itself is smaller to start with.
3.For a giant like hdfc bank to grow 15-20-% corresponds to literally building a new small bank every year because the nos are so big. What is the opportunity size for Hdfc Bank to be able to do it all the time ?
Disclosure- Was my largest holding for 15+ years but exited completely.
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