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HDFC Life stock. Requesting views.

Discussion in 'Fundamental Analysis' started by laveshdixit, Aug 16, 2019.

  1. laveshdixit

    laveshdixit Responder

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    Hi,

    Good morning.

    Requesting views on HDFC life.

    I have worked in Insurance industry (leading private Life insurance) for 4 years, and I feel that there is a lot of scope of penetration of the insurance in the country still. Private sectors (with the like of HDFC, SBI, Max and ICICI) are doing great in increasing their market share and also increasing the overall market size.

    I am interested in investing in HDFC Life (good parentage, solid performance, consistent growth, + in share, + in EPS, ROCE (5 years) 30%, Net profit vs EPS consistent).
    But Price/BV is very high among peers (18 vs 10).
    https://www.screener.in/company/HDFCLIFE/#cash-flow

    Should I be looking at this stock?

    Regards
    Lavesh

    Sent from my Nokia 6.1 Plus using DIY Technical Analysis mobile app
     
    laveshdixit, Aug 16, 2019
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  2. shabbir

    shabbir Administrator Staff Member

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    HDFC deserves in the portfolio for sure for stability.
     
    shabbir, Aug 16, 2019
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  3. laveshdixit

    laveshdixit Responder

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    laveshdixit, Aug 22, 2019
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  4. laveshdixit

    laveshdixit Responder

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    @shabbir, thanks for your views. I am adding HDFC Life to my basket.
     
    laveshdixit, Aug 22, 2019
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  5. laveshdixit

    laveshdixit Responder

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    Say I want to exit HDFC Life with 50%+ profit. What would be a good stock to invest it right now?
     
    laveshdixit, Dec 13, 2019
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  6. abhijitupsc

    abhijitupsc Contributor

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    I wont sell HDFC life for such a low profit..it has to give me at least 5 times returns after 10 years.

    Sent from my SM-J810GF using DIY Technical Analysis mobile app
     
    abhijitupsc, Dec 13, 2019
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  7. chaitanya_mella

    chaitanya_mella Contributor

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    You are holding one of the good stocks to be in right now.


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    chaitanya_mella, Dec 13, 2019
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  8. shabbir

    shabbir Administrator Staff Member

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    Invest back in HDFC life.

    The only question I have is, why you want to book and that too 50%?

    If you are not convinced in the prospect of the company there is no point in being in it.

    If you are convinced in the company, why book out?

    So first thing about 50% booking out is never a good idea.

    Next the reason you want to book out is because of portfolio re-balancing. One stock may be too heavy in your portfolio. So I give you an example of Rakesh Jhunjhunwala's portfolio where his major share of money was made in one stock only and it is Titan. Now think what would have happened if he had re-balanced it?

    So if re-balance is your reason, I am not convinced either.

    Do you agree?
     
    shabbir, Dec 13, 2019
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  9. laveshdixit

    laveshdixit Responder

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    Thanks for your views Shabbir. I have dropped the idea of booking out at 50%.

    On the contrary, thinking of increasing my stake. But with the dramatic rise in the stock price, currently at Rs 610, I am in doubt if I should buy now.
     
    laveshdixit, Dec 23, 2019
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  10. shabbir

    shabbir Administrator Staff Member

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    Patiently wait for dips.
     
    shabbir, Dec 23, 2019
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  11. laveshdixit

    laveshdixit Responder

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    Increased my HDFC Life holdings to 600 in quantity. I am keeping the one year target of 1000.
     
    laveshdixit, Jun 22, 2021
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