Hot Chips

HDFC
BSE Code: 500010
Volume: 117983
CMP: 2,289.10

Housing Development Finance Corporation (HDFC) is one of the premier home financing companies in India. The company has the highest market share in the home financing segment. The company has a good track record as far as its financials are concerned wherein it has consistently grown in terms of the topline as well as the bottomline. And despite the bleak environment in the domestic housing finance industry, the company has managed to post decent growth in its financials for Q1FY10. For the same period, HDFC’s topline and bottomline grew by about 21 per cent each. The company is also prudent in paying dividends and has recently rewarded its shareholders by paying a dividend of Rs 30 per share. The counter in the last few trading sessions has also witnessed significant addition of open interest along with a decent rise in the volumes and price in the Futures & Options space. A leading broking house has given a buy call on the counter with a price target of 10-15 per cent on its CMP in the coming period. Therefore, investors can take exposure in the counter with a medium to long-term perspective.