HDFC m-cap crosses Rs 4 lakh crore for first time! Becomes 4th Indian company to enter the club
HDFC's market capitalisation rose to Rs 4.04 lakh crore during the day's trade on BSE after its shares rallied more than 3 per cent to hit a 52-week high of Rs 2,357, in an otherwise weak market
The market capitalisation of Housing Development Finance Corporation Limited (HDFC) crossed Rs 4 lakh crore on Thursday for the first time ever. With this, the mortgage lender became the fourth Indian company to achieve this milestone.
HDFC's market capitalisation (m-cap) rose to Rs 4.04 lakh crore during the day's trade on Bombay Stock Exchange (BSE) after its shares rallied more than 3 per cent to hit a 52-week high of Rs 2,357, in an otherwise weak market. The m-cap was calculated at the stock's 52-week high price of Rs 2,357. HDFC was top gainer in the 30-share bluechip index, closing at Rs 2,343.85 apiece, up 2.52 per cent, on the BSE.
HDFC has now become the fourth largest company in terms of market capitalisation. Mukesh Ambani's Reliance Industries is the most valued firm with a market cap of Rs 7.99 lakh crore, followed by IT bellwether Tata Consultancy Services (TCS) (Rs 7.75 lakh crore) and HDFC Bank (Rs 6.57 crore).
The rise of HDFC is mainly because of stable asset quality, improvement in net interest margins (NIMs) and steady gain in market share. Since the beginning of this year, HDFC share has gained nearly 17 per cent as against 9 per cent growth in the Indian benchmark index BSE Sensex.
The stock has been on buying spree ahead of its first-quarter earnings numbers slated to be released on August 2, 2019. The board of the housing finance company is scheduled to meet on August 2 to approve financial results for the quarter ended June 30, 2019 (Q1 FY20). The board will also consider the issuance of secured redeemable non-convertible debentures (NCDs), in various tranches, worth Rs 45,000 crore on a private placement basis.
The 42nd annual general meeting (AGM) would be held on the same date in which the board would confirm the payment of interim dividend on equity shares and declare a final dividend on equity shares for the financial year ended March 31, 2019.
Among others, the board would also consider the appointment of a director in place of V. Srinivasa Rangan, who retires by rotation. Being eligible, he has offered himself for re-appointment.
Meanwhile, Indian equities, Sensex and Nifty, ended lower on Thursday, snapping three-day gaining streak as fresh trade war concerns and mixed corporate earnings dented investors' confidence. The BSE Sensex ended the day at 38,897, down 318 points, and NSE Nifty50 closed 90 points lower at 11,596.