Daily BriefsIndia

Daily Brief India: HDFC Bank, CARS24, Metropolis Healthcare Limited and more

In today’s briefing:

  • HDFC Bank: Attractive Valuation with Near-Term Growth Triggers
  • Cars24 Tearsheet – Leading Used Car Marketplace
  • S&P BSE Quiddity Leaderboard Dec 2022: Some More Interesting LONG-SHORT Pairs

HDFC Bank: Attractive Valuation with Near-Term Growth Triggers

By Ankit Agrawal, CFA

  • While HDFC Bank (“HDFCB”) is doing all the right things (distribution expansion, digital infrastructure revamp) from a long-term perspective, it also has near-term growth triggers led by its retail book.  
  • Excluding auto sector and two-wheeler loans, HDFCB’s retail book grew 25% YoY in Q1FY23. As the supply chain disruptions recede, HDFCB’s retail book growth could surprise on the upside.
  • HDFC Bank (HDFCB IN) is also making decent progress in its digitization upgrades which should further bolster the growth and productivity.

Cars24 Tearsheet – Leading Used Car Marketplace

By Pranav Bhavsar

  • Cars24 (1716847D IN) is one of India’s leading used auto (primarily car) marketplace.  The company claims a 90% share in the online used car market. 
  • Channel feedback suggests no customer loyalty and a poor competitive position compared to local unorganised sales yards. 
  • Losses narrowing due to reduction in expenses, declining revenues and recent high profile exits all point to caution. 

S&P BSE Quiddity Leaderboard Dec 2022: Some More Interesting LONG-SHORT Pairs

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the BSE SENSEX, 100, 200, and 500 Indices in the December 2022 Rebalance.
  • SENSEX and BSE 100 could both see one index change each. There could be multiple ADDs/DELs for the BSE 200 and BSE 500 indices.
  • There are several trading opportunities with interesting potential index flow dynamics.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars