BSE:500180

Stock Analysis Report

Executive Summary

HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has HDFC Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500180 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

500180

-1.0%

IN Banks

-1.4%

IN Market


1 Year Return

14.0%

500180

5.6%

IN Banks

6.4%

IN Market

Return vs Industry: 500180 exceeded the Indian Banks industry which returned 8.1% over the past year.

Return vs Market: 500180 exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

500180IndustryMarket
7 Day-0.6%-1.0%-1.4%
30 Day-2.7%-4.0%-3.3%
90 Day-5.1%-5.6%0.4%
1 Year14.9%14.0%6.0%5.6%8.4%6.4%
3 Year77.4%73.6%11.9%10.7%20.9%14.1%
5 Year131.9%123.5%6.3%2.9%30.7%18.5%

Price Volatility Vs. Market

How volatile is HDFC Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is HDFC Bank undervalued compared to its fair value and its price relative to the market?

25.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500180 (₹1210) is trading above our estimate of fair value (₹243.7)

Significantly Below Fair Value: 500180 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500180 is poor value based on its PE Ratio (25.2x) compared to the Banks industry average (18.1x).

PE vs Market: 500180 is poor value based on its PE Ratio (25.2x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 500180's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 500180 is overvalued based on its PB Ratio (3.9x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is HDFC Bank forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500180's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: 500180's earnings are forecast to decline over the next 3 years (-2.5% per year).

High Growth Earnings: 500180's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 500180's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 500180's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500180's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has HDFC Bank performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500180 has high quality earnings.

Growing Profit Margin: 500180's current net profit margins (37.6%) are higher than last year (36%).


Past Earnings Growth Analysis

Earnings Trend: 500180's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: 500180's earnings growth over the past year (23.3%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: 500180 earnings growth over the past year (23.3%) underperformed the Banks industry 25.5%.


Return on Equity

High ROE: 500180's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HDFC Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 500180 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500180's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: 500180's level of assets compared to its equity is low.

Allowance for Bad Loans: 500180 has a sufficient allowance for bad loans.

Low Risk Liabilities: 500180's liabilities are made up of primarily low risk sources of funding.

Loan Level: 500180 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 500180's loans are broadly funded by customer deposits.

Level of Bad Loans: 500180 has an appropriate level of bad loans (1.32%)


Next Steps

Dividend

What is HDFC Bank's current dividend yield, its reliability and sustainability?

0.62%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: 500180's dividend (0.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500180's dividend (0.62%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: 500180's dividends per share have been stable in the past 10 years.

Growing Dividend: 500180's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.6%), 500180's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500180's dividends in 3 years are forecast to be well covered by earnings (19.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Aditya Puri (68yo)

25.4yrs

Tenure

₹136,704,726

Compensation

Mr. Aditya Puri has been the Managing Director and a Director of HDFC Bank Limited since September 1994. Mr. Puri was the Chief Executive Officer of Citibank, Malaysia from 1992 to 1994. He has 45 years of ...


CEO Compensation Analysis

Compensation vs Market: Aditya's total compensation ($USD1.90M) is above average for companies of similar size in the Indian market ($USD1.10M).

Compensation vs Earnings: Aditya's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Aditya Puri
MD & Director25.4yrs₹136.70m0.12% 7.9b
Santosh Haldankar
Chief Compliance Officer0yrs₹3.98m0.000010% 666.8k
Kaizad Bharucha
Executive Director6.2yrs₹58.78m0.037% 2.5b
Sashidhar Jagdishan
Head of Finance & Additional Executive Director0.3yrs₹130.89m0.027% 1.8b
Srinivasan Vaidyanathan
Chief Financial Officer0.5yrsno datano data
Rakesh Singh
Group Head of Investment Banking0yrsno data0.0037% 243.4m
Munish Mittal
Chief Information Officer0yrsno data0.0014% 91.4m
Ashima Bhat
Group Head of Business Finance0yrsno data0.025% 1.6b
Manisha Parkar
Investor Relation Contact0yrsno datano data
Neeraj Jha
Head of Corporate Communications0yrsno data0.00043% 28.7m

0.5yrs

Average Tenure

54yo

Average Age

Experienced Management: 500180's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Aditya Puri
MD & Director25.4yrs₹136.70m0.12% 7.9b
Kaizad Bharucha
Executive Director6.2yrs₹58.78m0.037% 2.5b
Sashidhar Jagdishan
Head of Finance & Additional Executive Director0.3yrs₹130.89m0.027% 1.8b
Bhavesh Zaveri
Country Head of Wholesale Banking Operations & Cash Management Products and Additional Director0.3yrsno data0.0098% 654.1m
Shyamala Gopinath
Part-time Non-Executive Chairperson5.1yrs₹6.50mno data
Sanjiv Sachar
Additional Independent Director1.6yrs₹1.00mno data
Umesh Sarangi
Independent Non-Executive Director3.9yrs₹3.00mno data
Mavinakere Ranganath
Additional Independent Director1.1yrs₹250.00kno data
Malay Patel
Independent Non-Executive Director4.9yrs₹3.95mno data
Srikanth Nadhamuni
Non-Executive Director3.4yrs₹2.40mno data

3.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 500180's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500180 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

HDFC Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HDFC Bank Limited
  • Ticker: 500180
  • Exchange: BSE
  • Founded: 1994
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹6.668t
  • Shares outstanding: 5.48b
  • Website: https://www.hdfcbank.com

Location

  • HDFC Bank Limited
  • HDFC Bank House
  • Senapati Bapat Marg
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500180BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1995
HDFCBANKNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1995
HDBNYSE (New York Stock Exchange)SPON ADS EACH REP 3 ORD SHSUSUSDJul 2001
HDFADB (Deutsche Boerse AG)SPON ADS EACH REP 3 ORD SHSDEEURJul 2001
HDB NBMV (Bolsa Mexicana de Valores)SPON ADS EACH REP 3 ORD SHSMXMXNJul 2001
600180BSE (Mumbai Stock Exchange)INR2(FOREIGN PREMIUM)ININRJun 2015

Biography

HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. It operates in Treasury, Retail Banking, Wholesale Banking, and Other Banking Business segments. The company accepts savings, salary, current, and Demat accounts; fixed and recurring deposits; and safe deposit lockers, and rural and pension accounts, as well as offshore accounts and deposits, overdrafts against fixed deposits and salaries, and sweep-in facilities. It also provides personal, home, car, two wheeler, three wheeler, business, educational, gold, rural, and term loans; loans against properties, assets, and securities; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, term and professional loans, healthcare/medical equipment and commercial vehicle finance, and dealer finance. In addition, the company offers credit, debit, prepaid, and forex cards; forex, premier and private banking, payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, loan syndication, and merchant and cash management services; and insurance and investment products. Further, it provides short term finance, bill discounting, structured finance, export credit, documents collection, Internet and wholesale banking, mobile banking, real time gross settlement, channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. As of June 30, 2019, it had 5,130 branches and 13,395 automated teller machines in 2,764 cities/towns. HDFC Bank Limited was founded in 1994 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:46
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.