HDFC has an amazing loan book. It exceeds 25 billion(RS.25,000,000,000) as on 30.June.2015. Most of the loans have been issued by 13% of average annual interest. So HDFC can earn a huge interest income in coming quarters. Increasing of government employee salaries give them a better chance to issue high amount of loans too.
I can say Its the best quality loan book in the industry which is having higher percentage of mortage bacups
Investing in HDFC Is totally risk free as Gold loan percentage is 0.001%. It will not effect to any risk factor due to falling gold prices.
They dont have much leasing and hire pucase advances so administrative expenses like ceasing & auctioning will remain minimum.
Mortgage means properties which is having better price appreciation than vehicles and machinaries. Vehicles,plants & machinaries can depreciate time to time even those are high risk assets as movable.
HDFC isued onLY 64 Million shares, from that 59.5 million shares own by largest share holders.
In this scenario HDFC available for trade only 4 million shares. Almost nearly 2 million shares tarded 70-75 levels. So I beleve these holders will sell over 100/-.
in this scenario HDFC is more attractive & better than before. Its a sleeping giant at the moment.
THE LOAN BOOK.
Housing Loans Secured by Primary Mortgage Over Residential Properties 7,615.6 million
Housing Loans Against EPF. 8,690.9 million
Housing Loans on Guarantors & Others 6,509.8 million
Gold Loans Rs. 189,000/-
Business Loans Rs. 390,457/-
Lease Rentals receivables Rs.211,254 /-
Hire Purchase Rs. 98,582 /-
Project Loans rs. 26,032-
Other Loans 1.4 million
Sub Total 25,166 million
In this scenario with further developments, HDFC annualized EPS Surely to pass 15/- very soon. Foreigners has kept their eyes on HDFC too. be first to own & win fast.
My very very short term HDFC Target is Rs.110/-