Research on International Stock Ideas, Value Punks

Value Punks

Research on International Stock Ideas

Value Punks’ mission is to deliver institutional-grade research on international stock ideas in a digestible, reader-friendly format.

At Value Punks, we blend our background in traditional value-investing with an openness to embrace a constantly and rapidly evolving investment and business landscape.

Institutional-Grade Research

Equity Bottom-Up

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HDFC Bank is India’s largest private bank. The stock has been a tremendous compounder. Despite having always looked ‘expensive’, it has rewarded shareholders with a CAGR of 21.4% over the last 20 years (in USD). HDFC Bank is an option on India’s GDP growth and financialization.   
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We find that the most important factor one needs to possess to own any stock, but especially a banking business in an emerging market trading for premium to book value, is conviction. With this in mind, we’ll explain why we believe HDFC is a rock-solid banking business by deconstructing the key elements of a bank business model. 
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We acknowledge that a bank can be a bit of a black box, which is why it’s important for investors to have confidence in not only a bank’s business, but also its culture and management. HDFC Bank has a strong track record of navigating economic cycles through prudent risk management. 
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HDFC Bank is India’s largest private bank. The stock has been a tremendous compounder. Despite having always looked ‘expensive’, it has rewarded shareholders with a CAGR of 21.4% over the last 20 years (in USD). HDFC Bank is an option on India’s GDP growth and financialization.   


We find that the most important factor one needs to possess to own any stock, but especially a banking business in an emerging market trading for premium to book value, is conviction. With this in mind, we’ll explain why we believe HDFC is a rock-solid banking business by deconstructing the key elements of a bank business model. 




We acknowledge that a bank can be a bit of a black box, which is why it’s important for investors to have confidence in not only a bank’s business, but also its culture and management. HDFC Bank has a strong track record of navigating economic cycles through prudent risk management. 



Actionable Insights, Assured Alpha, ANTYA Investments

ANTYA Investments

Actionable Insights, Assured Alpha

Investing That Empowers You

ANTYA Investments Inc., regulated by the Ontario Securities Commission, is registered to provide wealth management services in Canada. ANTYA manages institutional, and high net-worth client portfolios on a discretionary basis. Our investment philosophy embraces a Core-Satellite approach.  The core of the portfolio is chosen from a group of fifteen asset classes. A few stock specific asymmetrical investment opportunities comprise the satellite segment. ANTYA invests only in global, large capitalization, and investment grade companies.  

Macroeconomics

Since the publication of our January 2018 report, the  spread between one-year Indian G-SEC and the U.S. Treasury has declined approximately 50bps. After accounting for currency depreciation and transaction costs, a U.S.$ investor generated zero return in the Indian debt market during the first four months of the current year.  We estimate that prospectively foreign investors in Indian debt markets ....

Since the publication of our January 2018 report, the  spread between one-year Indian G-SEC and the U.S. Treasury has declined approximately 50bps. After accounting for currency depreciation and transaction costs, a U.S.$ investor generated zero return in the Indian debt market during the first four months of the current year.  We estimate that prospectively foreign investors in Indian debt markets ....

India: The Indian Rupee – Next Stop INR 70/USD, G-SEC 10-Year Yield – 8%

Thematic (Sector/Industry)

The Reserve Bank of India upheld the status-quo by maintaining the liquidity adjustment facility rate at 6%. However, the vote was not unanimous, with one member on the committee voting for an increase to 6.25%. The tone of the monetary policy statement is cautious, and given tightening global credit conditions, if rates stay put the INR will depreciate putting additional pressure on already heightened inflation expectations. If rates rise it could dampen economic growth. Given that the central bank's primary job is inflation targeting first and the rest later, we advise erring on the side of caution.

The Reserve Bank of India upheld the status-quo by maintaining the liquidity adjustment facility rate at 6%. However, the vote was not unanimous, with one member on the committee voting for an increase to 6.25%. The tone of the monetary policy statement is cautious, and given tightening global credit conditions, if rates stay put the INR will depreciate putting additional pressure on already heightened inflation expectations. If rates rise it could dampen economic growth. Given that the central bank's primary job is inflation targeting first and the rest later, we advise erring on the side of caution.

The Reserve Bank of India–Between a Rock and a Hard Place, Higher Yields & Higher NPAs Forthcoming?

India

State Bank of India provides a wide range of banking and financial services to corporate, institutional, commercial, agricultural, industrial and individual customers throughout India.  The Bank also provides international banking to its Indian customers and has operations in other countries.

ICICI Bank Limited operates as a bank. The Bank offers saving accounts, loans, debit, credit cards, insurance, investments, mortgages, and online banking services. ICICI Bank serves customers worldwide.

HDFC Bank Ltd. offers a wide range of services to the global corporate sector. The Bank provides corporate banking and custodial services and is active in the treasury and capital markets. HDFC also markets project advisory services and capital market products such as Global Deposit Receipts, Euro currency loans, and Euro currency bonds.

Kotak Mahindra Bank Limited is a full service commercial bank. The Bank offers a wide range of products and services such as personal, commercial, and corporate banking services, including deposit accounts, loans, and investments. Kotak Mahindra Bank serves customers in India.

Axis Bank Limited provides a full range of banking services throughout India. The Group's activities include retail banking, investment management, merchant banking, treasury and NRI services, cash and credit management services, and ATM facilities.

Punjab National Bank provides financial services such as corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. The Company provides services to domestic conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies.

Bank of Baroda owns and operates commercial banks in India.  The Group's banks provide the traditional forms of banking services, including CD's, Credit Card services and a variety of car loans, in addition to gold banking and a range of insurance services.  The Group also owns IBU International Finance Limited, an international banking company in Hong Kong.

IndusInd Bank Limited is a Mumbai-based Indian new generation bank established in 1994. The Bank provides a range of banking and financial services including  wholesale banking, credit monitoring, risk management, tele-banking, investment banking and commercial lending. IndusInd Bank operates branches throughout India as well as an office in Dubai and London.

Indian Overseas Bank operates some 1,429 banking branches in India, as well as six branches in overseas locations.  The Group's banks provide loan and deposit schemes, Internet banking, and a full range of banking services.

Canara Bank Ltd. provides a full range of banking services throughout India. The Group's activities include retail banking, commercial and personal banking, investment management, treasury & NRI services, cash management and assorted ATM facilities.

Commonwealth Bank of Australia provides banking, life insurance, and related services for individuals, small businesses and medium sized commercial enterprises. The Bank provides corporate and general banking, international financing, institutional banking and stock broking and funds management such as superannuation product.

National Australia Bank Limited is an international banking group which operates in Australia, New Zealand, Europe, Asia and the United States.  The Group offers banking services, credit and access card facilities, leasing, housing and general finance, international and investment banking, wealth and funds management, life insurance and custodian, trustee and nominee services.

DBS Group Holdings Limited and its subsidiaries provide a variety of financial services.  The Company offers services including mortgage financing, lease and hire purchase financing, nominee and trustee, funds management, corporate advisory and brokerage .  DBS Group also acts as the primary dealer in Singapore government securities.

China Construction Bank Corporation provides a comprehensive range of commercial banking products and services to individuals and corporate customers. The Bank's business consists of three principal business segments: corporate banking, personal banking, and treasury operations. China Construction Bank also services infrastructure loans, residential mortgage, and bank cards.

Oversea-Chinese Banking Corporation Limited offers a comprehensive range of financial services.  The Company's services include deposit-taking, corporate, enterprise and personal lending, international trade financing, investment banking, private banking, treasury, stockbroking, insurance, credit cards, cash management, asset management and other financial and related services.

Sumitomo Mitsui Financial Group, Inc. manages financial operations for its subsidiaries. The Company provides commercial banking and a variety of financial services.

Sumitomo Mitsui Financial Group (8316 JP)

Mitsubishi UFJ Financial Group, Inc. (MUFG) is a holding company established through the merger of Mitsubishi Tokyo Financial Group and UFJ Holdings. As a financial group, the Company provides a variety of financial and investment services including commercial banking, trust banking, international finance, and assets management services.

Mitsubishi UFJ Financial (MUFG) (8306 JP)

Mizuho Financial Group, Inc. provides comprehensive financial services through its subsidiaries. The Group provides variety of financial services such as general banking, securities brokerage, trust banking, and assets management.

Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage, leasing, credit cards, and consumer finance.  The Company operates through physical stores, the Internet and other distribution channels across North America and elsewhere internationally.

PNC Financial Services Group, Inc. is a diversified financial services organization.  The Company provides regional banking, wholesale banking, and asset management services nationally and in the Company's primary regional markets.

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HDFC Bank (ADR) (HDB US)

Deep Dive: HDFC Bank (HDB US)

We are kicking off with our first deep dive post this year on HDFC Bank - India’s largest private bank. In this post, we provide a contextual...

Value Punks

India: The Indian Rupee – Next Stop INR 70/USD, G-SEC 10-Year Yield – 8%

Since the publication of our January 2018 report, the spread between one-year Indian G-SEC and the U.S. Treasury has declined approximately 50bps....

ANTYA Investments

The Reserve Bank of India–Between a Rock and a Hard Place, Higher Yields & Higher NPAs Forthcoming?

The Reserve Bank of India upheld the status-quo by maintaining the liquidity adjustment facility rate at 6%. However, the vote was not unanimous,...

ANTYA Investments

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