HDFC INDIA BANK

This company is a long shot position and comes from my trip to India last week. It was recommended to me by my host and the leaders in his school. Sometimes the best research is to listen well. I can do that. Want to know what millineals are buying listen to them, ease drop on them, ask them questions and just look at them. What do they eat? What are they wearing? Where do they go? You will learn. The same goes for other subsets in our society. Senior Adults? Teens? Farmers? Etc.

This is their PR on what they do.

HDFC Bank Limited provides a range of banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in Treasury, Retail Banking, Wholesale Banking, and Other Banking Business segments. It accepts savings accounts, salary accounts, current accounts, fixed and recurring deposits, demat accounts, safe deposit lockers, and rural accounts, as well as offshore accounts and deposits. The company also offers personal, business, home, consumer durable, car, two wheeler, gold, educational, rural, and term loans; loans for professionals; loans against property, securities, and assets; overdrafts; government sponsored programs; and working capital, healthcare, channel, short term, structured, dealer, and vendor finance, as well as agricultural lending. In addition, it provides credit, debit, and prepaid cards; private banking services; export, import, remittance, bank guarantees, and letter of credit services, as well as merchant and cash management services; life, health, motor, travel, and home insurance products; and investment product, such as mutual funds, equities and derivatives, IPO, and bonds. Further, the company offers bill discounting, real time gross settlement, bankers to right/public issue, forex, money market, employees trusts, and tax collection services; and investment banking services in the areas of project appraisal, structured finance, loan syndication, debt capital markets, equity placement, mergers and acquisitions, corporate advisory, and capital market advisory services. Additionally, it provides correspondent banking, settlement, custodial, disbursement, clearing, and administrative and fiduciary support services, as well as online and mobile banking services. As of March 31, 2017, the company operated a network of 4,715 branches and 12,260 ATMs in 2,657 cities/towns. HDFC Bank Limited was founded in 1994 and is based in Mumbai, India.

This company has 13% growth in sales and 20% earnings per share growth. That makes it a yes in both categories. Pretax profit is 46% and that is above industry average. 16% return on equity is also an industry leading number. It has too much debt at 49%!!! We should be buying this between $51 and $75. It’s in the HOLD zone but as you know with my studies we are buying it anyway. It pays a great dividend and that has grown over the past five years every year.

So why buy? Gut feeling. I want a stock in banking. India is growing. We will see. Speculation not on value of company but on stock price.

We buy 100 shares today at $100.76 a share. Cost basis is $10,076.00

Well to this point we have three in black and one in red. Corning we have a 12% loss. However we are 25% up on Dorman, 2.5% up on Southwest Airlines and .08% on UPS. We are up $1,240.00 since January. Not bad a total return of 4.8%.