HDFC Bank share has tested the patience of investor over the past 3 years.
As we can see, due to merger with HDFC, there are some Builder loans which are putting stress.
NIM is also impacted due to the merger and may take another 4-5 quarters to stabilize. Till that time, investors will keep guessing and may have pessimistic views.
While other banks have done well to control their NPA(s), during past one year, the same may not be true going forward.
Though earlier premium valuations may not return back, but even with reasonable P/B, stock can hold due to moderate EPS growth and can sustain financial storms if they appear on horizon during 2024 due to geo political scenario.
Disc: Booked some profit before merger and now holding some position. This is my old holding since 2011.
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