Hold HDFC for long term, says Parag Doctor

Parag Doctor of Keynote Capital advised to hold HDFC for long term. According to him, it is a core financial stock to have in ones portfolio.

Doctor told CNBC-TV18, “HDFC is extremely strong stock in the long-term and it has been giving about 15-20 percent compound annual growth rate (CAGR) over the last 15 years or so. As far as the short-term and medium term horizon view is, it has corrected from about Rs 880 to the current levels. So there has been about a 10 percent correction already in the last couple of months.”
He further said, “We are looking at the worst case downside to around Rs 750 or so which is where the 200-day long-term average is located. So we have a buy on this stock, we expect it to not go lower than the Rs 750 level. So every dip in this stock has to be used to accumulate for the long-term and one year target would be at least Rs 880 if not higher.”
“So investor should hold on to this stock and add to it on every dip. It is a core financial stock to have in ones portfolio; it is a relatively low beta name HDFC. It is not really going to get affected by any kind of bearish moves on the Nifty by too much, so I would advise to hold on,” Doctor added.