HDFC twins are trading at historic valuation discount vs Sensex

Analysts expect trend to persist till FY23 end, in light of headwinds


Illustration: Binay Sinha

Krishna Kant Mumbai
For the first time since the 2008 Lehman Crisis, HDFC and HDFC Bank are trading at a valuation discount to the broader market. Historically, both these firms have traded at a significant premium to the benchmark BSE Sensex’s valuation.

Mortgage lender HDFC is currently trading at a price-to-book-value (P/BV) ratio of 2.45 times (x) on a consolidated basis, a 30 per cent discount to the Sensex P/BV ratio of 3.47x on Thursday. Ditto for HDFC Bank. India’s largest private sector bank is valued at 3x its book value at its current stock price, a 13 per cent discount to the index

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First Published: Apr 22 2022 | 11:14 PM IST

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