Is HDFC Bank (HDB) a Great Long-Term Investment?

Motiwala Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. In 2021, the fund’s core US capital appreciation gained +26.5% net of fees. US markets continued their winning ways with the S&P 500 index returning 28.7%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Motiwala Capital, in its Q4 2021 investor letter, mentioned HDFC Bank Limited (NYSE:HDB) and discussed its stance on the firm. Founded in 1994, HDFC Bank Limited (NYSE:HDB) is a Mumbai, India-based financial services company with a $119.6 billion market capitalization, and is currently spearheaded by its CEO, Sashidhar Jagdishan. HDFC Bank Limited (NYSE:HDB) delivered a -0.49% return since the beginning of the year, while its 12-month returns are down by -13.19%. The stock closed at $64.75 per share on April 05, 2022.

Here is what Motiwala Capital has to say about HDFC Bank Limited (NYSE:HDB) in its Q4 2021 investor letter:

“HDFC Bank (NYSE:HDB) is the leading bank in India. HDFC bank continues to compound sales and profits at 15% and 20% respectively and generates a solid 15-20% ROE. We purchased shares in late December as the share price declined and became attractive. HDFC Bank is a fast grower, and we expect it to continue to generate excellent returns for shareholders.”

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Our calculations show that HDFC Bank Limited (NYSE:HDB) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. HDFC Bank Limited (NYSE:HDB) was in 38 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 40 funds in the previous quarter. HDFC Bank Limited (NYSE:HDB) delivered a -3.70% return in the past 3 months.

In March 2022 we also shared another hedge fund’s views on HDFC Bank Limited (NYSE:HDB) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.