Latest news with #GurmeetChadha
News18
16 hours ago
- Business
- News18
From Rs 15 Cr Missed ESOPs To 25,000 Shares Target: Advisor Buys 10 HDFC Bank Stocks Monthly
Last Updated: Financial advisor regrets leaving Rs 15 crore gains in HDFC Bank stocks for a 25% salary hike. He now buys 10 HDFC shares monthly, aiming for 25000 shares in 10-20 years. A financial advisor has shared an interesting anecdote on how he left ESOPs worth Rs 15 crore in HDFC Bank stocks by switching job for a 25 per cent salary hike. He regretted his decision to lose compounded gains that could have been made if he had stayed longer, as explained in the X post by Gurmeet Chadha, a Chief Investment Officer of a wealth management company. His post came in the context of the first bonus issue in over 30 years by India's largest private lender. At the time, Chadha chose to exit without vesting his Employee Stock Option Plan (ESOPs), tempted by the immediate increase in salary. However, by 2010, he realised the long-term wealth he had forgone. As a result, he started buying 10 HDFC Bank shares every month—a disciplined investing habit he has continued for nine years. In a striking comparison, he noted that a former colleague who stayed back and allowed the ESOPs to vest is now sitting on a fortune worth Rs 15 crore. 'Lesson learnt—Never interrupt the compounding process," Chadha wrote. Chadha said that he has been compensating his foregone by purchasing 10 HDFC Bank shares every month for the last 15 years, apart from adding lump sum during corrections. He said he has been looking to have over 25000 shares with a time horizon of 10-20 years. 'Yes I have been for more 15 years + & also add lump sum during corrections. My quantity goal is 25000 shares. I think of 10-20 times in 10-20 years & not 10-20%," he added in the X post. In a regulatory filing along with Q1FY26 results, HDFC Bank also announced a bonus issue. It said, 'Issuance of Bonus equity shares in the proportion of 1:1 i.e. 1 (One) equity share of Re. 1/- each for every 1 (One) fully paid-up equity share of Re. 1/- each held by the Members of the Bank as on the Record Date (mentioned below)." The bank also announced a special interim dividend of Rs 5 per equity for the financial year 2025-26. HDFC Bank shares have given a whopping 35,994 per cent since the listing in 1995, as per Google Finance. This also include two times stock splits in 2011 and 2019. HDFC Bank on Saturday reported a 12.24 per cent year-on-year rise in its standalone net profit to Rs 18,155.21 crore for the first quarter ended June 2025. Its net interest income, which is the difference between interest earned and interest expended, rose 5.4% to Rs 31,439 crore in April-June, against Rs 29,839 crore in the year-ago period. Its net profit had stood at Rs 16,174.75 crore in the corresponding period last year. However, on a consolidated basis, its net profit fell by 1.31 per cent to Rs 16,258 crore for the June 2025 quarter. The lender had reported a net profit of Rs 16,475 crore in the year-ago period. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
5 days ago
- Business
- Mint
Ahead of HBFC Bank bonus issue, this fund manager reveals why he's bought 10 bank shares monthly for over 15 years
HDFC Bank share price in focus: As HDFC Bank shares hog the limelight following the announcement of consideration of bonus share issue in its upcoming board meeting on Saturday, July 19, a fund manager on Dalal Street revealed his strategy of quietly and steadily accumulating the stock of India's largest private lender, offering a powerful lesson in discipline, patience, and the magic of compounding. Gurmeet Chadha, CIO & Managing Partner at Complete Circle Wealth, in a recent post on the social media platform X, said that he has been consistently buying 10 shares of HDFC Bank every month for more than 15 years, regardless of Indian stock market conditions. Beyond this disciplined monthly approach, he also makes lump-sum purchases during market corrections, using them as opportunities to accumulate more. His ultimate target? 25,000 shares of HDFC Bank. More than numbers, Chadha post emphasised his mindset of thinking long term: 'I think of 10–20 times in 10–20 years, not 10–20%.' But this strategy was born from a lesson he learned the hard way. In a post from December 2020, Gurmeet Chadha candidly shared that he left HDFC Bank in 2006, lured by a 25% salary hike, and did not vest his ESOPs. By 2010, he realised the mistake and started his disciplined buying — 10 shares every month for 9 years at that point. Meanwhile, a colleague who stayed back had ESOPs worth ₹ 15 crore, Chadha shared. His biggest takeaway from the entire experience was: Never interrupt the power of compounding! Chadha's long-term, compounding-focused approach reflects a deep conviction in the HDFC Bank fundamentals. As HDFC Bank gears up for a rare bonus issue, the stock is hovering near all-time high levels of ₹ 2,027.40 on the BSE. Today, July 17, HDFC Bank share price hit a high of ₹ 2003. The lender's stock is up 12% so far in 2025 while it has gained 23% over the past one year. HDFC Bank remains a favourite of several institutional players and retail investors alike. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
09-07-2025
- Business
- Time of India
They left jobs for F&O trading and...: Fund manager warns as retail traders lose Rs 1.8 lakh crore in 2 years
Retail investors in India are facing steep losses in the equity derivatives market , raising concerns about the financial well-being of the middle class and its ripple effects on the broader economy. According to a recent report by SEBI (Securities and Exchange Board of India), retail traders lost a staggering Rs 1.05 lakh crore in derivatives trading during FY25 — a sharp 41% increase from the Rs 74,812 crore loss recorded in FY24. Gurmeet Chadha , Managing Partner and CIO, in a post on social media platform X said much of this financial damage is being borne by the tax-paying middle class. He pointed out that this alarming trend is not just a market concern but is beginning to affect broader economic activity, particularly consumption in urban and semi-urban regions. Chadha noted a worrying shift: many individuals, hoping to strike it rich through trading, have left stable jobs to become full-time traders. This move, often driven by unrealistic expectations and lack of professional guidance, has resulted in significant financial setbacks for many. The impact of these losses is now visible in reduced household spending, hinting at the deeper consequences of unchecked retail participation in high-risk financial instruments, Gurmeet Chadha said. — connectgurmeet (@connectgurmeet) He emphasized the need for a more disciplined approach to personal finance—urging individuals to focus on long-term investments rather than short-term speculative trades. His advice was clear: reduce excessive trading activity, increase informed investing, and seek help from financial experts to build wealth more sustainably and avoid emotional and economic distress. This alarming trend comes at a time when the regulator is already probing high-profile allegations of market manipulation. Just before SEBI released this study, it issued an interim order against US-based trading firm Jane Street, accusing it of manipulating Indian stock indices to profit from its derivative positions. The timing has only intensified public scrutiny on the structure and regulation of India's derivatives market. Retail participation in futures and options (F&O) has soared in recent years, driven by the allure of quick profits, social media-fueled hype, and the perception that trading is a viable path to wealth. However, this surge in activity has not been matched with adequate risk education, said many netizens, adding that many new traders enter the market without understanding the complexities of options, volatility, and capital allocation. T Social media users voiced strong reactions to the SEBI report . Many pointed out that a majority of the profits in derivatives trading are absorbed by prop desks, brokers, and levies like STT and GST — leaving retail traders with little or nothing. Some users likened the market to a casino where the house (institutions) always wins and retail players almost always lose. Others lamented that these trading losses are now visibly hitting consumption patterns, as households dip into savings or even fall into debt trying to chase short-term profits.
Time of India
09-07-2025
- Business
- Time of India
Betting on consumption? Put 70-75% in discretionary & 20-30% in staples: Gurmeet Chadha
Gurmeet Chadha suggests focusing on Gen-Z driven discretionary spending. He is optimistic about hotel stocks like Indian Hotels and Lemon Tree. IndiGo is expected to perform well in aviation. Digital consumption stocks such as Eternal and PB Fintech are also under consideration. Selectively, FMCG names like HUL, Nestle, and ITC may offer opportunities. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , Managing Partner & CIO,, says investment strategy should focus on discretionary spending driven by Gen-Z. He is optimistic about hotels and mentions Indian Hotels and Lemon Tree. In aviation, IndiGo will continue to do well. Digital consumption stocks like Eternal and PB Fintech should be considered. Selectively, FMCG names like HUL Nestle , and ITC may offer opportunities. Marico 's positive update suggests potential in has to be a little overweight on discretionary as Gen-Z is spending more and that makes up the bulk of the consumption. We are extremely constructive on hotels. We have been very lucky with Indian Hotels and Lemon Tree. We were very early there. InterGlobe is another one despite persistent selling by both the promoters, though obviously the Gangwal group has sold more. We have seen that despite too much supply, IndiGo has done well and will probably continue to gain more market share. There are issues in terms of supply of Boeing models but IndiGo is largely going for Airbus, so in near term, they will add more to the operating have to look at some more digital consumption themes. We have Eternal in our portfolio. We are looking at PB Fintech as well. And then, maybe tactically look at some of the FMCG names if some volume growth comes back. For example, HUL returns for five years are flat. Nestle has been flat for three years. ITC is weighed down by the BAT group selling, and is available at 14-15 times. So, in consumption, you can be 70% in travel, hospitality, discretionary names and 20-30% in very under-owned names in staples. One quarter you get 2-3-4% volume growth more and rural recovery is giving you a sign. Look at Marico. It had a very good update last quarter. Their food and hair oil segment in particular are doing better within staples. So, selectively maybe 20-30% there and about 70-75% in discretionary.I am delighted with that Rs 2000 and I have been an investor since 2007. But purely on operating metrics, ICICI has surprisingly been a little more subdued compared to HDFC and Kotak. Obviously, HDFC and Kotak did not do much for almost three years. So, ICICI Bank will again have an industry leading performance both in terms of CASA deposits as well as the advances.I like the way they have positioned their lending portfolio, the high yielding part which is loan against used cars, loan against property (LAP) and other products. They have a right mix of secured and unsecured with deals also moving up. They have done a beautiful thing in the last three years. There are no product-wise targets, no insurance targets, no card targets. A branch has to achieve unit profitability and amongst all private banks, ICICI now has the lowest attrition. HDFC and Kotak are struggling with 25-30-35% attrition at the branch level and the culture is very the culture is right, banks then continue to deliver outstanding returns for a long period of time and at some point of time, banks need to introspect the focus they have on insurance and fee based products versus core banking. ICICI is getting that balance right. I also think SBI could unlock some value with more listings coming example, look at HDFC AMC, it is over Rs 1 lakh crore, at about Rs 8 lakh crore AUM. Now SBI MF, once it gets listed, is at Rs 12 lakh crore and the yields are identical, about 40 basis points, which means it could do like Rs 3,000 crore PAT. That could lead to some value unlocking. SBI General, SBI Capital Markets, if you add subsidiaries, give a little bit discount, even that probably could add 20-30% to despite posting very good numbers, SBI still does not get the rating multiple some of the private banks get. I am not saying it should get a three price to book, but the way it has turned around, it deserves a slightly better multiple than what it is right now, which is around 1.3 to 1.5 times. So that looks pretty good to me.I would prefer them and I also like Federal because of the leadership change that has happened there with Mr Manian coming, who was a key pillar behind Kotak's success in the last two decades. The only issue with Federal Bank is the culture. It is still a south-based bank trying to diversify. If Mr Manian is able to build and bring out that change there, Federal could be another mid-sized bank to look at.
Time of India
03-07-2025
- Business
- Time of India
CDMO and Generics the next pharma growth pillars: Gurmeet Chadha
So, we are pretty constructive. More importantly, if you see the correlation of pharma with Nifty, on a short-term basis it is around 0.6, on a long-term basis it is less than 0.5. Gurmeet Chadha suggests that with corporate profitability nearing all-time highs and markets at 21 times forward earnings, investors should temper return expectations. He recommends a balanced portfolio with long-dated bonds and gold. Rural demand is showing signs of recovery, while the pharma sector, particularly CDMO and generics, presents opportunities with lower correlation to the Nifty. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "People have got some bit of consolidation in last six-nine months. So, you have to readjust to the new normal. You cannot make 25% returns when you are at 21 times earnings. So, have a more balanced allocation in terms of your portfolio, include some long-dated bonds, add maybe a bit of a flavour of gold, and be a little modest in terms of expectations," says Gurmeet Chadha, Complete Circle couple of things you have to see. One, our corporate profitability to GDP is now nearing all-time high. We are at almost 4.7%. The last time this had touched 5% was 2007-08. So, corporate profitability despite earning growth being mediocre is now at about 4.7% to the GDP. So, if you see last quarter earnings also, broader market, this I am talking about Nifty 500 , so broader market was about 11% plus earning if this quarter we do slightly better, then markets could sustain these levels because you are at 21 times forward earnings, so the market is not cheap. So, the earnings are extremely important. Market is also a little bit nervous on the US trade deal and what happens before 9th of July, so that event should play out over the next few days, so that is something the market would look up to and then maybe some of the sectors which have been impacted by tariffs whether it is auto, whether it is textile, whether it is selectively pharma, and host of other sectors will take more direction most importantly, we are seeing a bit of pickup in the rural demand , that is evident in two-wheeler numbers, that is evident in farm equipment and tractor numbers, that is evident in commentary you listen to some of the fertiliser companies, that is one good part of it. And historically, whenever monsoons have been 5% or 6% above normal, agriculture GVA is around 6%. So, it is about 2% higher than the long-term average which is 4%, which is a good sign, because we had a very soft rural economy for almost couple of now, the rural economy is coming back. Urban is still soft, probably needs a little more boost other than the rate cuts by RBI and maybe some GST cuts would the second half of the year could be better, but provided as I said, earnings play out and we do not have tariff issues. Secondly, most importantly, we have to reset our return expectations and we have been saying this for a while, we will not get 25-30% returns people have got some bit of consolidation in last six-nine months. So, you have to readjust to the new normal. You cannot make 25% returns when you are at 21 times earnings. So, have a more balanced allocation in terms of your portfolio, include some long-dated bonds, add maybe a bit of a flavour of gold, and be a little modest in terms of you break pharma into four subsets, the healthcare hospital part has done pretty well, whether it is Apollo, Max. Narayana also caught up pretty well. What I think could do well once there is more clarity is, the CDMO and generics, the market needs clarity in general is a huge opportunity. Already if you see the likes of Divi's, Laurus, some of the other names, they are already at their all-time high. And if you see the export numbers of last year versus now, 70% numbers have already happened in the first five-six there is more opportunity and once the Biosecure Act if at all finds light at the end of the tunnel in US, you could see Indian companies really gaining some market share vis-à-vis China. The last one is the branded generics bit, which is more like FMCG in Indian context, where valuations are slightly rich but you get steady, not much cyclicality in the we like Mankind in this space. We are tracking the likes of Ipca, Cipla , etc, in this we are pretty constructive. More importantly, if you see the correlation of pharma with Nifty, on a short-term basis it is around 0.6, on a long-term basis it is less than when corrections happen and in a market like this you got to also see downside risk in the sector, Nifty Pharma falls less than 50%. So, for example, if you go back to 2008 when markets fell 60%, Nifty Pharma was down 27%. In covid, again it fell half, in fact it recovered the fastest post.2011 again, it fell 15% versus 20-25% broader fall in the market. So, it is very important for us to look at risk adjusted returns and low correlation also while building a portfolio and pharma has outperformed Nifty over last 10, 15, 20 years. So, it falls lesser and over a long period outperforms, so deserves more allocation and more weight in the portfolio.
