HDFC Group, the Deepak Parekh led banking and financial services conglomerate has crossed the $100 billion mark. In fact rising share prices of the group's four listed firms have helped the Group cross 10 lakh crores in market-capitalisation.
The HDFC group is the only group to have achieved this feat after that of the Tata Group. The Tata Group's current market capitalisation is in the range of Rs 11 lakh crores. Tata Consultancy Services, the software consultancy arm of the Tatas has an m-cap of Rs 7,18,623 crores. A few months ago TCS had reported of breaking into the $100 billion mark.
That the group achieved the feat with barely four entities, while Tata did so with thirty listed firms stands testimony to the stocks's performance and the group's management.
The group's four listed entities include HDFC Bank, HDFC Ltd, HDFC Standard Life and Gruh Finance. An IPO for HDFC's mutual fund arm is being planned, and this entry, analysts suggest, will help m-cap soar by another Rs 30,000 crore.
At the close of trading hours on Tuesday, the bank's market-capitalisation stood at Rs 5,59,633 crores. The bank's m-cap crossed Rs 5 lakh crores on Jan 18 this year, becoming the third largest valued stock back then (the top being Reliance Industries and TCS).
During Tuesday's trading session, the finance company HDFC Ltd had mcap of Rs 3,26,776 crores, the Insurance arm-Rs 95,936 crores and Gruh Finance's figures read Rs 24,967 crores. All numbers have been sourced from the Bombay Stock Exchange.
The group's market-capitalisation of over 10 lakh crores is over the $100 billion mark,and hence bigger than the GDP of 120 countries- Ecuador, Luxembourg, Belarus, Slovakia, Costa Rica, Kenya, Bulgaria, and even Sri-Lanka. In fact neighboring country Pakistan's valuation of stocks listed on the Pakistan Stock Exchange has been pegged at $80 billion.
The financial services conglomerate is an example of professionally managed company with no involvement from a promoter or family-managed business or entities.
That, HDFC Group has managed to reap it big at a time when it's peers in the financial services domain are grappling with rising bad loans suggests a well-managed bank.
The bank's FII holding has remained in the range of 75% since the Lehman bankruptcy crisis that saw foreign investors exiting from the banking and financial services businesses. The bank not only managed to retain them, but in 2015 added 5% more to it's FII holdings.