During pandemic Covid 19, there is a sale continuing in bluechip stocks. If we compare share price as of now to two months back just before Corona virus hit us, number of quality stocks are available at a discount of 40 to 50%.
Fundamentally strong companies shares won’t be available at cheaper price post Covid-19. As it is said you get good prices at bad times, every 10 to 15 years investors get a golden chance to build portfolios buying quality stock at throwaway prices. HDFC one of the largest housing finance company in India with a terrific track records in terms of creating wealth for it’s share holders. HDFC is trading at RS 1500 from it’s high of RS 2499.
For the financial year 2019-2020, HDFC has registered a 84.5% standalone profit at RS 17,769.35 crore on revenue at Rs 58,738.92 crore that grew by 35% over previous year. And the Q4 fy19-20 results for HDFC was good reported a profit of Rs 2232.5 crore. Additional HDFC said the company recommended a dividend of Rs 21 per equity share for the financial year 2019-2020.
Well, Investing one lakh rupees on HDFC for coming two years can generate 40% capital gains from here on. Compare to bank fixed deposit HDFC stock might give you a higher returns post Covid-19. A buy recommend for target of Rs 2200 in one or two years.