In my opinion, HDFC’s valuation presently is close to cyclical historic lows from a valuation and technical standpoint. It has not consistently traded below its 200 week simple moving average for more than a few weeks in the past 15 years, and that’s where it is presently. I follow the Occam’s razor and put this down to FII selling alone, not speculating about whether I’m mission something. At the end of the day, FIIs need to sell what they own when the dollar strengthens so much and there is so much uncertainty - they own A LOT of HDFC.
Have written about this on my portfolio thread which I have linked here.
I have a high returns threshold and have an aggressive small and midcap focused portfolio, but at present valuations HDFC fits my criteria of potential 20% CAGR over a three year period. Took a small position yesterday (1.5% of PF), and looking to add aggressively on further dips.
Not a financial advisor. Not a recommendation.