Street Smart Investor
Long-term horizon, energy, natural resources, micro-cap

HDFC Bank: Macroeconomic Headwinds Present Excellent Buying Opportunity

Company - HDFC Bank (NYSE:HDB)

Recommendation - Strong Buy with a target 30-40% upside in 1 year

Thesis Summary - Macroeconomic headwinds have resulted in a 30% decline in the shares of HDFC Bank in the last three months. The second largest private bank in India and probably the best bank in India in terms of asset quality is a strong buy and can give robust returns as macro-economic headwinds wane.

The Buy Thesis

HDFC Bank is the second largest private sector bank in India and is on the verge of becoming the largest private sector bank by overtaking ICICI Bank (NYSE:IBN) during this year. As of August 2013, the bank had 3,119 branches, 11,088 ATMs...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details