Normally, when novice investors like you and me approach Samir Arora, the whiz-kid fund manager with Helios Capital, for a stock recommendation, he rebuffs us with a gruff “I have no new stock ideas. I am buying the same old stuff”.
However, when Avanne Dubash, the beautiful and charming doe-eyed anchor of ET Now asks the same question, Samir Arora sings like a bird and reveals all of his secrets.
We cannot blame Samir Arora for this because such is Avanne Dubash’s charm that even the best of us would go weak-kneed and mushy in her presence.
In fact, Avanne appears to have strategized it well. She wore a lovely green dress which not only showed off her trim figure but also reminded Samir Arora of the lush greenery in the markets and soothed his nerves and lowered his guard.
“HDFC Bank is the next HDFC Bank” Samir Arora proclaimed to a question from Avanne as to which stock has the credentials to become the next HDFC Bank.
As expected, Samir Arora’s logic is simple and infallible. He explained that the total market share of the private sector banks is presently around 25% to 30% while the rest is with the PSU Banks. The PSU Banks have been steadily losing market share over the past 10 years owing to lack of capital and technology backwardness. This trend is likely to accelerate in the future and strong banks like HDFC Bank will be able to wrest more market share from the PSU Banks as well as from their counterparts in the private space.
Samir Arora’s fascination for HDFC Bank is well understood. In an earlier interview, he revealed that he had homed in on the stock at the time of its IPO in 1995. He reminisced about how the stock had not moved even an inch for more than three years and how several investors had jumped ship in the misconception that the stock would remain an underdog. However, Samir Arora was undeterred because he saw that the earnings were consistently growing at 30% CAGR. He held on to the stock and was well rewarded for his conviction because the stock has since been a 100-bagger and generated incalculable riches for its shareholders.
It is worth noting that Shyam Sekhar, who is an expert in micro-cap stocks, recently revealed that HDFC Bank is the solitary large-cap stock that he has in his portfolio. Shyam explained that apart from its ability to draw customers, predictability of earnings and technological prowess, HDFC Bank’s foray into the rural areas would catapult it to new heights in the years to come. “Such a compounding stock must have anchor place in every portfolio” Shyam Sekhar said.
The rationale of Samir Arora and Shyam Sekhar applies also to smaller private banks which have a management quality similar to that of HDFC Bank.
We saw that Akash Prakash of Amansa Capital recently recommended Federal Bank as his high conviction pick. Federal Bank is also a favourite of Billionaires Rakesh Jhunjhunwala and MA Yusuffali.
We also saw that Brahmal Vasudevan’s Creador/ Latinia recently took a large stake in City Union Bank, which is also on the path of growth and profitability.
DCB Bank is yet another private sector bank stock which is on a high trajectory of growth. It may be recalled that DCB Bank, which had fallen from grace after being labeled a potential “100 bagger” stock, has picked itself up from the dust and notched up hefty gains for its shareholders!
Sorry, but the start of the article is really in bad taste and extremely se*ist in nature. Describing the host was not required.
Take a chill pill weirdo. Close your eyes and do some yoga, then try and build a portfolio ok. If you are scared of woes, then it’s your problem. We guys like if a lady works for our attention.
You don’t even know me but on the basis of 2 sentences you call me a “weirdo”!! Who is the weirdo?
True that!
When one talks of private banks : How one can forget Yes Bank and Indus Ind Bank.
QoQ and YoY – they have delivered above average results – rather one of the best in the industry and with good asset quality .
They did it even during times when market was in down phase and other banks did not deliver .Just look at and compare them with -ICICI Bank and Axis Bank.
They are tech savvy banks and their leaders are amongst the best in the banking circles . Further – to Rane Kapoor goes the credit of starting a bank from scratch and bringing to the present condition.
The Growth of the 2 banks also looks sustainable .
No doubt – kudos to HDFC Bank and Poori shb ! but I do not understand when these two banks are overlooked .
Very rightly said. it seems the article is totally biased , no doubt hdfc bank is a great rural penetration oriented bank but as much as mentioned viz other banks in the private sector
In the whole article there Was no any stock recommend by Samir Arora…Admin make us fool
First ever soft porn stock market related report.. nothing bad as such..
keep it up
We invester are in bad habit of always searching for good stock ideas,but HDFC bank is one of the best stock idea Indian stock market offered in last two Decades and it will remain best stock idea among large cap stocks for atleast five more years .Any body not having HDFC bank in portfolio has realy missed a great story but nothing stops for participating even now.
Porinju also recommended Federal.
HDFC Bank lost the sheen. There is nothing in the bank to command high premium.
There are other banks. Even a professionally run & tech savy ICICI bank lost out these days. Look at Indus Ind Bank. This is going to go through the roof in next 10 years.