Yes, PPFCF had -8% exposure to HDFC ltd. Before jan 2023. After merger of HDFC twins - they are now holdc bank.
What I find very interesting personally is that it is HDFc ltd. Which has brought up the cost of capital after merger and therefore, that lead to the market giving them a good beating. PPFCF was betting on this business with higher CoC and lending across specific lending categories.
Also, Mr Thakkar had earlier spoken about how 3-4 quarters after merger will be difficult and will take streamlining business. Streamlining = replacing high cost of capital of HDFC ltd with the Low cost of capital which bank gets. (This happens on maturity of various loans).
Another thing, HDFC ltd deposits are not growing at the pace of lending. For deposits:
- they are increasing branches
- somehow all credit card offers (isolated example - on mac products) are being pushed out by HdFC
- macro economic activity this year may increase liquidity in the market and also once some of the oversold (without fundamentals) scripts take a beating - money will come back to saving account, FD or big solid companies.
I like how things stand. Open to other critiques.
This is just my opinion and I’m invested. Therefore biased.
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