First of all HDFC ltd actual market value was much higher than what it was getting due to holding company discount so 2.7 lakhs could be a depressed market value. Second since merger, bank has increased the book value by 20%. So it beats me as to why the current price of the bank should be the same as pre-merger.
Also you ignore the fact that premerger 1650 price was at 3.5 times book while current price is at 2.7 times book. At the same book value the price should be 2100. So currently market has already discounted all the bad that it sees in the merger.
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