HDFC Bank has had a seriously rough run. The stock is down more than 25% this year, and around 30% from its 52-week high. The market cap has taken a pretty big hit too.
There’s a lot going on margins have been under pressure, the HDFC merger hasn’t delivered the growth the market expected, and now governance and leadership issues.
The latest blow came this week, with HDFC Bank falling another 2.2% after reports of a US securities lawsuit and continued uncertainty around CEO Sashidhar Jagdishan’s tenure. (source)
A stock that was once considered almost a core holding for Indian investors has definitely gone through a major change in market perception.
Do you think HDFC Bank is going through a temporary rough patch, or has the story fundamentally changed?