Housing Development Finance Corporation (HDFC) is India’s first mortgage financing company. It was established in the year 1977 and has since diversified into banking, mutual funds, and insurance.
Believe it or not, ICICI played a key role in promoting HDFC when it first started in 1977. HDFC went on to become a publicly traded company in 1995 with an IPO of ₹50 crores.
The HDFC stock (ticker: HDFC) has grown by approximately ₹2,650 since 1999 and as of 2021, it is a blue-chip stock that’s coveted by several investors. Let’s take a deeper look at HDFC’s financials.
The Financials Of HDFC Stock
1. Stock Name: Housing Development Finance Corp Ltd (HDFC)
2. Share Price: ₹2,694*
3. Market Cap: ₹4,85,555 crores ($65.46 billion)
4. Dividend Yield: 0.86
5. Beta: 1.34
6. 52 Week Low: ₹1,623.00
7. 52 Week High: ₹2,896.00
Fun fact: HDFC has a bigger market cap than Twitter, Ford, HP, Doordash, Metlife, and several other US companies.
HDFC Stock Price From 1999 To 2021
Fun fact: HDFC limited is the 6th largest company by market capitalization.
How Are HDFC Stock Prices?
HDFC is a blue-chip company whose stock has grown by approximately 47% in the past year and 97% in the last 5 years. Let’s compare HDFC stock’s returns versus its competitors:
LIC Housing Finance
PNB Housing Finance
Indiabulls Housing Finance
Can Fin Homes
Is HDFC Stock A Good Buy?
Historically speaking, HDFC has been known to outperform its competitors over the long run. Furthermore, HDFC is a part of the Nifty 50 index that comprises 50 of the biggest Indian companies.
However, HDFC recently missed its revenue expectations for the quarter ending June 2021. That said, its total income grew year on year from ₹29,959.34 crores to ₹30,997.13 crores.
Overall, it may be a tempting proposition to invest in the HDFC stock because of its historical growth and stock prices. But there’s more to deciding whether the HDFC stock is a good buy for you.
Does HDFC Stock Fit Into Your Portfolio?
Your portfolio would be a combination of your investment goals and risk profile along with factors like affordability. Think of this. Quality doesn’t come cheap. That’s definitely true in the case of HDFC stock.
HDFC costs upwards of ₹2,500 as of 24-08-2021 and you may have to analyse where you can include enough HDFC stock to meet your investment goals.
The type of investor you are will also matter. For example, HDFC stock is solid so aggressive investors have been known to add it to their portfolio for stability.
Conservative investors, on the other hand, allocate a large portion of their portfolio to large-cap stocks like HDFC. But there is one common highlight in either case - HDFC stock pays dividends.
Thus, it’s important to understand your investment goals, risk profile, and other factors before you invest your hard-earned money in any direct stock like HDFC.
Top Ways To Buy HDFC Stock From India
There are multiple ways to invest in HDFC stock from India. Some are relatively less risky, for example, mutual funds, while others have the potential to be more lucrative, like buying HDFC stock directly.
1. Mutual Funds
Top mutual funds like the ones on Cube offer a simple and efficient way to invest in the HDFC stock.
Motilal Oswal Focused 25 Fund
Axis Focused 25 Fund
Mirae Asset Tax Saver Fund
Mutual funds on the Cube Wealth app are handpicked and curated by Wealth First, Cube’s mutual fund advisor, who has a track record of beating Nifty by 50% over the past decade.
2. On Your Own
Buying stocks on your own is a tricky proposition, especially if you’re a busy professional. The research involved is heavy and you’ll have to keep up with everyday financial news and quarterly financial reports. Nevertheless, it is an option that several DIY enthusiasts like to explore.
1. Is it safe to invest in HDFC Limited?
HDFC is a blue-chip company that has a solid track record in the market since 1999. It offers dividends as well. However, it is still a direct stock and is prone to short term volatility. Thus, it’s best to speak to a trained financial advisor before investing.
2. Why is HDFC stock falling?
While HDFC has outperformed its peers, it has missed its profit expectations for the quarter ended June 30, 2021. That is one of the reasons why HDFC stock had briefly lost its value in July 2021.
3. Is HDFC limited part of Bank Nifty?
No, HDFC limited is not a part of Bank Nifty but it is a part of Nifty 50 and Nifty Fin Service. HDFC is the parent company of HDFC Bank which is, in fact, a part of Bank Nifty.
4. Who is the owner of HDFC Ltd?
HDFC limited was founded by Hasmukhbhai Parekh in 1977 and as of August 2021, Keki Mistry is the CEO of the mortgage financing company.
Facts & figures are true as of 24-08-2021. All information mentioned is for educational purposes and relies on publicly available information. None of the information shared here is to be construed as investment advice. We strongly recommend you consult a Cube Wealth coach before investing your money in any stock, mutual fund. PMS or alternative asset.
Curious about personal finance and all things money. Can either find me reading a book or dancing to a tune.
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