Thursday, August 27, 2020

HDFC LIMITED | Swing Trade Strategy | Share/Stock Price Level Outlook


CMP: 1746

➽ In this article we will discuss recent development in the  stock of HDFC LIMITED in the Stock Market. 

Recent Key Strengths

➽ Rising Net Cash Flow and Cash from Operating activity continuously from the previous 3 years in row

➽ Stocks with improving cash flow, with good durability 

➽ 875.5% returns for Nifty 500 over 5.1 years

➽ Effectively using its capital to generate profit

➽ Effectively using Shareholders fund 

➽ Return on equity (ROE) improving since last 2 year

➽ Efficient in managing Assets to generate Profits

➽ Strong cash generating ability from core business 

HDFC LIMITED | Swing Trade Strategy | Share/Stock Price Level Outlook

Recent Weaknesses

➽ Broker downgrades in price or recommendation in the past one month

➽ MFs decreased their shareholding last quarter

➽ Decline in Net Profit (QoQ)

➽ Decline in Net Profit with falling Profit Margin (QoQ)

➽ Companies with High Debt

CN Postional  Outlook 

hdfc share price

➽ HDFC after consolidation started rising slowly. As the stock is trading in sideways trend so there is no any big momentum in the stock price in upward direction. As in a sideways trend stock nature become like a pendulum it goes up and down in a short range.

➽ Now HDFC  started rising with a significant volume and delivery % which is a very positive signal for the upside.

➽ If the HDFC stock crosses the 1970 mark then the trend become strong uptrend which has the more probability to happen.

➽ Currently stock is at 1746 level and its immediate level is 1970 in short term and if stock closes above the level of 1970 then the nearest level that HDFC stock would test is the level of 2400.

➽ As of now in every dip or correction long position should be initiated in the HDFC share . 

Recent Annual Results

➽ Annual Sales increasing significantly for the three years in a row showing good sign of performance

➽ Income from other income decreased from 279 cr. to 70 in March 2020.

➽ Tax payment also decreased from 4518 cr in March 2019 to 3366 cr in March 2020.

➽ Net Profit increased 70% on YoY basis , from 10190 cr in March 2019 to 17080 cr in March 2020

➽ Overall HDFC is a large corporate giant with huge Market Cap and fundamentally a good and strong company. 

➽ In a long duration HDFC has been always a wealth creator till now and an investor one of the most loved stock all time.

Note- What is your opinion on HDFC Ltd. please comment below.

Thanks for your Precious Time.

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r- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader,user and company that are mention on this website.We are not SEBI registered financial advisor or analyst.

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