HDFC (Housing Development Finance Corporation Ltd) vs BSE Sensex 30 Comparison

HDFC

BSE Sensex 30

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HDFC

BSE Sensex 30

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HDFC

BSE Sensex 30

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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BSE Sensex 30

HDFC

APO

BAJAJFINSV

8591

EQH

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Housing Development Finance Corporation Ltd
Glance View

Economic Moat

None

Market Cap

5T INR

Industry

Financial Services

Housing Development Finance Corporation Ltd. (HDFC) is a powerful narrative in the Indian financial landscape, epitomizing the steady rise of housing finance in one of the world's most populous nations. Established in 1977, HDFC emerged as a pioneer in providing housing finance, at a time when home loans were virtually unheard of in India. The company's visionary founders sought to address the pressing need for affordable housing by creating a robust institution that would support individuals in owning a home—a dream for many. With an approach rooted in transparency, customer focus, and financial integrity, HDFC has skillfully navigated economic changes, regulatory environments, and shifting demographics to become a key player in the financing arena. HDFC's core business revolves around providing long-term housing loans to homebuyers across the socio-economic spectrum. The institution's profit engine primarily runs on the interest margins from these home loans—acquiring funds at lower interest rates and lending them at a higher rate. Over the years, HDFC has expanded its scope beyond mere home loans to offer a plethora of financial services, including insurance, asset management, and banking, through its subsidiaries and associates. This diversification has not only stabilized its revenue streams but has also strengthened its foothold in the broader financial ecosystem. By ensuring a steady cash flow through interest and leveraging its broad portfolio of financial services, HDFC has crafted a robust business model that sustains its growth while meeting the burgeoning housing needs of India's population.

View HDFC Analysis

HDFC Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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IN		Bajaj Finserv Ltd NSE:BAJAJFINSV	Select
JP		Orix Corp TSE:8591	Select
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ZA	F	FirstRand Ltd JSE:FSR	Add
US		Apollo Global Management Inc NYSE:APO	Add
IN		Bajaj Finserv Ltd NSE:BAJAJFINSV	Add
JP		Orix Corp TSE:8591	Add
US		Equitable Holdings Inc NYSE:EQH	Add
TW		Yuanta Financial Holding Co Ltd TWSE:2885	Add
KR		Meritz Financial Group Inc KRX:138040	Add
IT		Banca Mediolanum SpA MIL:BMED	Add
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US		Jackson Financial Inc NYSE:JXN	Add

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HDFC

vs

BSE Sensex 30

Stocks Performance
HDFC vs BSE Sensex 30

Performance Gap
HDFC vs BSE Sensex 30

Performance By Year
HDFC vs BSE Sensex 30

Competitors Performance
Housing Development Finance Corporation Ltd vs Peers

Housing Development Finance Corporation Ltd
Glance View

Company

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HDFC vs BSE Sensex 30

Stocks Performance HDFC vs BSE Sensex 30

Performance Gap HDFC vs BSE Sensex 30

Performance By Year HDFC vs BSE Sensex 30

Competitors Performance Housing Development Finance Corporation Ltd vs Peers

Housing Development Finance Corporation Ltd Glance View

Company

Help

Tools

Stocks

HDFC

vs

BSE Sensex 30

Stocks Performance
HDFC vs BSE Sensex 30

Performance Gap
HDFC vs BSE Sensex 30

Performance By Year
HDFC vs BSE Sensex 30

Competitors Performance
Housing Development Finance Corporation Ltd vs Peers

Housing Development Finance Corporation Ltd
Glance View