I have been holding HDFC for a long time but am worried about the way the stock has fallen in the last 6 months? Should I hold on or exit the stock?

Before you take a view on whether to hold on or exit the stock of HDFC, here is what you need to know about the company and the stock.

· It is not only the largest but also the most profitable home finance company in India with consistent profit margins and growth for over 40 years.

· The company holds important assets like HDFC Bank, HDFC Life, HDFC Mutual Fund, HDFC Ergo among others.

· As far as the stock of HDFC is concerned, it has surely been languishing for the last few months as the macro situation for home finance has not been too good.

· However, the tide may be finally changing for the company as there appears to be some good news on the growth front; both top line and bottom line.

· In fact, HDFC confirmed that its individual loans business had sharply improved in the second quarter ended Sep-20 to pre-COVID levels and results may be interesting.

· Loan disbursements in the Sep-20 quarter stood at 95% of pre-COVID levels. Individual loan approvals grew 9% YOY and the number of loan applications received was up 12%.

· A major area of worry, the recoveries have also improved to the best levels since the pandemic broke out and assures that gross and net NPAs should taper.

· As additional boost to your perception, loans under Moratorium-1 were 22.4% of the asset book as compared to 27% under Moratorium-1.