Agree on near term growth impact, however management was cognisant of this fact that merger will increase CDR for the bank.
To understand how undervalued is the stock now, look at below:
- HDFC bank market cap before merger was slightly less than 10 lakh crore
- HDFC Ltd was 5.2 lakh crore
- Total combined market cap currently is ~12 lakh crore
- So basically bank has added 6 lakh crore of mortgage book and subsidiaries like HDFC life, AMC, HDFC ergo at super low value (as per current price)?
How can we explain this?
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