HDFC Bank Stock Rates Fall After Valuing ADR at a Discount

HDFC BankHDFC Bank diluted 0.2% to Rs 1197.15 on pricing its 6.6-million American Depository Receipts at $92.10 each.

The scrip hit a high of Rs 1,218 and a low of Rs 1,192.30 during the day. On 28 May 2007, the scrip touched a 52-week high of Rs 1,274 and a 52-week low of Rs 693.10 on 19 July 2006.

The HDFC Bank stock had developed 10.27% within the one month period to 17 July 2007 as against Sensex’s return of 8.59%. The scrip had outperformed the market over the past quarter, going down 22.41% as compared to the Sensex’s increase of 11.83%.

There were 16,777 shares for trading on the BSE counter today, and it has had average daily volume of 1.47 lakh shares in the past one quarter.

Currently, the company’s equity is Rs 333.19 crore, with 33.319-crore outstanding shares with a face value of Rs 10 each. The existing market price of Rs 1,197.15 brushes off its Q1 June 2007 annualized earning per share of Rs 38.6, by a PE multiple of 31.01.

After pricing its American Depository Receipts (ADR) bidding of 6.6 million ADRs at $92.10 each, the bank’s subsisting ADRs chop down 0.4% to $92.26 on Tuesday, 17 July 2007, on the NYSE. Each ADR symbolizes three equity shares of HDFC Bank.
For the first quarter ended June 2007, HDFC Bank’s net profit rose 34.24% to Rs 321.23 crore as against Rs 239.30 crore in Q1 June 2006. Total operating income rose 47.2% to Rs 2,641.7 crore in Q1 June 2007 as against Rs 1,795.21 crore in Q1 June 2006.