I was doing a study on the above two companies as Housing Finance and Insurance sector interest me and wish to enter into these segment. Right now I do not have any shares in any of the above company.
A study of HDFC financials indicate that almost 88,000 crore comes from the Insurance business whilst the core business revenue is 44 million (approx). Out of 88,000 expenses is around 75,000 crore.
My question is - Is it not better to buy HDFC at the cmp than go for HDFC Life as 50% of the HDFC Life is owned by HDFC.
It also owns 20% of HDFC bank as well. So HDFC is kind of a holding company of various non related business. It is great to have a mini diversification between Housing finance, bank and insurance
Alternatively leave HDFC and go for SBI life under insurance and LIC housing under housing finance
Is my thought process correct or am I wrong.