Stock Recommendations- HDFC Bank & Torrent Power

HDFC Bank

HDFC Bank is the largest private sector bank in India by market cap. Bank incorporated in 1994. Bank has a network of 2150 branches and 6838 ATMs. Bank reported a sales turnover of near Rs 6700 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 4800 Cr. Near 40% increase can be seen in the sales turn over. Bank reported a net profit of near Rs 1200 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was near Rs 910 Cr. About 30% increase can be seen in the net profit.

Market cap of the bank is near Rs 103000 Cr. Book value is Rs 108.55. Price/Book ratio is 4.08. P/E stands at 23. It is above the industry P/E of 9. Company reported annual sales of near Rs 20000 Cr in the FY 2011.  The stock price created a 52 week high of Rs 519 on 19 July 2011. The stock price also created a 52 week low of Rs 396 on 9 February 2011. The stock price is now trading in the levels of Rs 420. It is an exceptional buying opportunity for long term investors. Long term target is Rs 560/

Torrent Power

It is a respected power company in India. It is a part of Torrent Group. Company reported a sales turnover of near Rs 200 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 173 Cr. About 20% gain can be seen in the sales turn over.  Company reported a net profit of near Rs 290 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was near Rs 220 Cr. 35% gain can be seen in the net profit.

Market cap of the company is near Rs 9000 Cr. Book value is Rs 101.33. Price/Book ratio is 1.89. P/E stands at 7. It is clearly below the industry P/E of 14. Company reported sales turnover of near Rs 6800 Cr in the FY 2011. Stock price created a 52 week high of Rs 283 on 30 December 2010. The stock price also created a 52 week low of Rs 183 in 22 December 2011. The stock price is now trading in the levels of Rs 190. It is a marvelous buying opportunity for long term investors.

Stocks recommended by San Joseph

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