Home run

The rally on Dalal Street has also seen the stock of home loan major HDFC gaining ground from Rs 796 to Rs 966 since the year began, an increase of 21%. Riding the momentum, Keki Mistry, vice-chairman and CEO, sold 84,200 shares in three tranches in the open market at an average price of Rs 928.25 on June 9. Post the sale, Mistry held around 484,000 shares (0.03%). Interestingly, the share sale was followed by an Esop allotment that saw an additional 197,000 shares being issued to Mistry. As a result, his holding increased to 681,000 shares (0.04%). Analysts continue to be bullish on the premier mortgage finance major given its robust loan book growth of over 16% in FY14 to Rs 1.97 lakh crore and strong net interest margin of over 4%. For the recent fiscal, net profit increased 12% to Rs 5,440 crore, while total income, including interest income, grew 14% to Rs 24,143 crore. Given that there is enough room for foreign institutional investors to increase their holding from the current 75% to 100%, the outlook for the stock continues to be buoyant.