Housing Spectacular Profits: How HDFC Gave 38210% Returns

Published by Trinkerr Academy on

If you had invested ₹1 lakh in HDFC in September 2002, you could have had ₹4.2 crores today! This multibagger grew 382x in 20 years and gave its investors ₹3,82,10,760 in profits and ₹40,70,528 in dividends. Here’s a quick peek at the company.

🏦 Stock Name: Housing Development Finance Corporation Ltd.

⭐ About The Company
In 1977, HDFC Ltd. became the first housing finance company in India and is now a major housing finance provider in India.

🧺 Diversification Across Financial Services

🏦 Lending: The company owns a 26% stake as a promoter in HDFC Bank, India’s largest private sector bank. It also has an educational loan arm called Credila Financial Services.

🧔🏼‍♂️ Life Insurance: HDFC Life is a joint venture between HDFC and Standard Life Aberdeen and it is one of India’s leading life insurance companies. HDFC owns a 58.86% stake as a promoter.

🛡️ General Insurance: HDFC ERGO is a joint venture between HDFC and ERGO International AG.

🪙 Asset Management: HDFC AMC is India’s largest asset management company with assets under management of ₹4.1 trillion. HDFC owns a 73.92% stake as a promoter.

🏛️ The company has venture capital and a real estate-focused private equity firm.

It has incorporated three housing finance companies:
🏦 Gruh Finance SBI
🏦 Home Finance
🏦 Can Fin Homes

The conglomerate has a distribution network of 651 interconnected offices which includes 206 offices of HDFC Sales with outreach programs to several towns and cities all over India. It also has 3 representative offices in Dubai, London and Singapore which caters to non-residential Indians (NRIs).

💰 Stock Value
💵 HDFC had 1 bonus issue and 1 stock split:
📅 On 12th December 2002, a bonus issue in the ratio of 1:1 (1652 x 2)
📅 On 18th August 2010, a stock split in the ratio of 10:2 (3304 x 5)

The effective number of shares went from 1652 to 16520.

💵 On October 07, 2002, the shares of the company were trading at ₹60.05, while they were priced at ₹2,313 as of October 06, 2022.


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