HDFC Bank can give a breakout on the upside after narrow ranges, so one should buy the stock, says Sudarshan Sukhani of s2analytics.com.
Sukhani told CNBC-TV18, "HDFC Bank has been a relative underperformer after the big rally that it saw, for three days it has been in a trading range. A trading range for any up trending stock is usually resolved on the upside, so maybe some other banks will not participate, this shifting will keep on going. However, today I am assuming that HDFC Bank can give us a breakout on the upside after narrow ranges, so one should be buying it."
The company's trailing 12-month (TTM) EPS was at Rs 84.40 per share. (Mar, 2013). The stock's price-to-earnings (P/E) ratio was 8.12. The latest book value of the company is Rs 125.75 per share. At current value, the price-to-book value of the company was 5.45. The dividend yield of the company was 0.63 percent.
Disclosure: Sudarshan Sukhani has no holdings in the stocks discussed.