Friday, July 5, 2013

A mature stock worth accumulating around the current price

HDFC BANK Ltd: Expected EPS for 2014 is Rs. 33/- to Rs. 35/- for a likely price of Rs.720- and subsequent price of Rs. 820/- in the next one year time or so. Can be bought around Rs.620/- to Rs. 645/-. Current price is Rs.655/-. The stock has appreciated about 9 times in last 9 years. Expected to give over @ 20% compound ROR over the next few years. The Banking Sector is highly underpenetrated in India.

Never be in a hurry to buy any stock. Market always give opportunities for buying at around the target price.  Patience is one virtue one must cultivate to be a successful investor. Secondly, always buy in small lots for averaging the target price.



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